Sterling Climbs with Probable Longer Brexit Extension

GBP

The British pound rallied against rivals amid growing chances of longer Brexit deadline extension. The House of Commons passed a bill to block a "no-deal" Brexit. Theresa May should request a further extension to Article 50 to avoid a hard Brexit. However, it will be up to the European leaders whether to grant a longer extension. On the other hand, the Bank of England confirmed that they would do whatever it takes to support the UK economy in case of a hard Brexit. The GBPUSD climbed to a high of $1.3196, and the GBPJPY tested a two-week high of 147.20.

USD

The dollar index which measures the greenback against a basket of major currencies retreated from a four-week high of 97.52 to 97.02 on soft economic data. The ADP Nonfarm Employment Change came in at 129K lower than the expectation of 184K, while the previous reading was revised higher to 197K from 183K. Moreover, the ISM Non-Manufacturing PMI dropped below a consensus of 58.1 to 56.1 in March from 59.7 prior. On the other hand, the growing optimism over trade between China and the United States led investors to jump into riskier assets. The commodity currencies advanced against the dollar where the AUDUSD rose to a high of $0.7119, and NZDUSD climbed to $0.6792. Meanwhile, the EURUSD edged higher towards $1.1255.

Metals

Precious metals prices continued to trade in a tight range despite the dollar weakness. The price of a gold ounce was trading near the 100-hour exponential moving average at $1292 as investors await fresh fundamental developments before deciding on the next move. The silver ounce hovered marginally above $15, and palladium erased early-week gains to settle slightly above $1400.

Oil                                                                                    

Oil prices retreated from a five-month high on US inventory buildup. The US Energy Information Administration reported that the weekly US crude inventories rose by 7.238 million barrels last week. Also, the US oil production climbed to a new record of 12.2 million barrels per day after settling near 12.1 million barrels per day for more than six weeks. The West Texas Intermediate crude futures dipped to a low of $62.03, and Brent futures fell to a low of $68.78.

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