Pound Falters as Brexit Deal Hopes Fade

GBP

The British pound declined against rivals earlier today as the chances of reaching a Brexit deal are on the drop. The UK government announced a while ago that the DUP is holding up progress and the probability of striking a deal is low. Yesterday, EU and UK negotiators were close to setting a draft deal but needed the DUP support. The GBPUSD is currently trading below $1.27, and the GBPJPY tumbled to 137.60.

EUR

The euro inched higher ahead of the European trading session as German officials indicated that the country could be softening the fiscal stance to support the economy. The recent economic data showed that the German economy is slowing down, especially the manufacturing sector. The EURUSD is currently trading above $1.1030 after testing a high of $1.1060.

DXY

The dollar index, which measures the greenback against a basket of major currencies, is currently hovering around 98.33 as market participants await fresh hints on Brexit and trade truce. The recent Brexit developments weighed on the dollar as investors shifted to European currencies. However, the dollar could recover if the hopes of a Brexit deal slip away. The US 10-year yields currently sit at 1.73%, and the USDJPY is trading at 108.65.

Metals

Gold prices drifted lower amid enhanced investors' risk appetite. The recent developments on Brexit and the trade truce between China and the United States weighed on safe-assets. The price of a gold ounce dipped to $1478, the price of a silver ounce declined to $17.18, while palladium continued to hover near an all-time high of $1740.

Oil

Oil prices continued to trade in a tight range awaiting fresh fundamental drivers. The West Texas Intermediate crude futures and Brent futures are trading near $52.90 and $58.90, respectively.

Major Economic Events

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