UK Preliminary Quarterly GDP is out on Thursday at 09:00 MT time.
UK pound stabilizes as British Parliament backs Brexit delay
On Friday, the UK pound managed to soar in Asia right after British lawmakers backed a motion, which set out the option to ask the European bloc for a short delay if Britain’s legislative body is able to agree on a Brexit pact by March 20, or a longer delay in case no agreement can be timely reached.
As a matter of fact, the UK currency stood still after on Thursday the motion was passed. The currency pair GBP/USD pair showed 1.3246, adding 0.05%.
UK Prime Minister Theresa May’s Brexit pact faced a second defeat in the UK Parliament. Another vote on her twice-rejected agreement will probably occur next week.
UK lawmakers are bound to decide whether to underpin an agreement they feel doesn’t ensure a clean break from the European bloc or deny it and take it for granted that Brexit could be softened or even prevented by a long delay.
Besides this, the currency pair USD/JPY tumbled by 0.1% showing 111.62 right after the Bank of Japan’s decision to keep its short-term interest rate objective at minus 0.1%, exactly as anticipated. The BOJ maintained the 10-year JGB yield goal around 0%, which is also in line with expectations.
Japan’s major financial institution had its evaluation of the Japanese economy tweaked, referring to soaring risks from the deceleration in the external sector.
Aside from that, the currency pair USD/CNY was intact, keeping to 6.7184. Eventually, US-China trade negotiations regained attention after American leader told that within 3-4 weeks his country will know for sure whether a trade agreement with China is real or not. Trump added that China responsibly approaches their trade talks.
The market optimism waned amid stricter restrictions to control rising coronavirus infections. S&P 500 and Nasdaq dropped from the all-time highs, while the USD jumped higher.
S&P 500 skyrocketed to the all-time high on optimism that Biden’s fiscal stimulus will support economic growth and boost corporate earnings.
PMI reports from the EU, the UK, and the USA will be released during the day!