The euro and pound take the initiative, taking advantage of the weakness of the dollar
January 08, 2019 @ 13:40 UTC
The U.S. dollar’s rivals reaped the benefits of a weak buck on Monday, with both the euro and the British pound gaining. The ICE U.S. Dollar Index DXY, +0.25% a gauge of the currency’s performance against six major rivals, dropped to its weakest level since mid-October, according to FactSet. The index was last down 0.5% at 95.668.
The euro EURUSD, -0.3050% the buck’s main competitor, rallied sharply in response, last buying $1.1479, up from $1.1398 late Friday in New York. The British pound GBPUSD, -0.2035% fetched $1.2768, up from $1.2722 late Friday.
British lawmakers will vote Jan. 15 on May’s Brexit plan, the BBC reported, citing government sources. The vote had been set for December but was postponed at the last minute to avoid defeat. The deal sets out the terms of the U.K.’s exit from the European Union, which is due to take place on March 29 regardless of whether Parliament OK’s the agreement May struck with fellow EU leaders.
Meanwhile, the dollar could be vulnerable to further softness amid expectations that the Federal Reserve will adopt a slower pace of rate increases, or perhaps even pause the tightening cycle, Cheetham said.
The dollar fell Friday, giving back gains scored after a much stronger-than-expected jobs report, following remarks by Fed Chairman Jerome Powell that were interpreted by investors as a sign the central bank was prepared to cool its tightening pace amid growing jitters among market participants that the economy is slowing.
Euro climbs sharply against sluggish dollar; sterling gains as Brexit vote looms, MarketWatch, Jan 08