Sterling Gets Excited By (Denied) Reports Of Article 50 Extension

Sterling Gets Excited By (Denied) Reports Of Article 50 Extension

Spreadex  | Jan 11, 2019 12:02

While the European indices started to flatten out, the pound rose after some Brexit speculation.

Climbing 0.3% against the euro and 0.7% against the dollar, sending cable above $1.283 for the first time since late November, sterling was working with a couple of positive titbits on Friday. A better than expected monthly GDP reading – it was still only 0.2% – took the edge off of another manufacturing production disappointment and helped send the currency higher.

More important was a news item in the Evening Standard suggesting that the 29th March Brexit date may have to be delayed because, at the moment, Britain wouldn’t be in any way ready. And though a spokeswoman for Theresa May claimed Article 50 won’t be extended, the pound was keen to make the most of report.

Sterling’s gains, alongside a reversal in its commodity and banking sectors, saw the FTSE completely give up the growth that, at one point, had seen the index strike 7000. The DAX and CAC, meanwhile, tumbled into the red after a decent start, falling 0.3% apiece.

The mild losses are set to continue when Dow Jones gets involved, with the futures having the index pull back from 24000 as it dips 50 points. As for some US data, the latest inflation reading is expected to slip from 0.0% to -0.1% month-on-month.

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