Forex trends Wednesday: Sterling rises despite few signs Brexit ‘plan B’ will gain traction

UK currencySource: Bank of England

Sterling was higher on Tuesday despite U.K. Prime Minister Theresa May’s Brexit plan B appearing unlikely to cut the mustard with parliament any better than plan A. But it appeared parliament was moving toward stopping a no-deal exit and a potential second referendum on whether to leave the EU at all.

Boris Schlossberg, managing director of foreign exchange strategy, said that stronger labor market data also bolstered the pound on Tuesday.

“The focus with cable remains squarely on the Brexit negotiations which appear to have been so badly botched by PM May that a new consensus is starting to form around the idea of a second referendum,” he said in a note on Tuesday. “The market is now completely discounting the prospect of a hard Brexit, though the political risk still remains in play and volatility is sure to ratchet higher if no clear path is visible to the market.”

Currencies

The U.S. dollar index was at 96.30 at 7:05 A.M. SGT after spiking as high as 96.46 and slipping as low as 96.25 during Tuesday’s session, according to ICE data.

The 10-year U.S. Treasury note yield was at 2.745 percent at 8:48 A.M. SGT after dipping as low 2.729 percent from as high as 2.762 percent during Tuesday’s session, according to Tullett Prebon data.

The euro/dollar was at 1.1364 at 8:47 A.M. SGT after trading in a 1.1335 to 1.1374 range on Tuesday, according to DZHI data.

The British pound/dollar was at 1.2951 at 8:47 A.M. SGT after trading in a 1.2854 to 1.2975 range on Tuesday, according to DZHI data.

The dollar/yen was at 109.451 at 8:47 A.M. SGT after trading in a 109.12 to 109.694 range on Tuesday, according to DZHI data.

The dollar/yuan was at 6.8071 at Tuesday’s close after trading in a 6.7903 to 6.8103 range during the session, according to DZHI data.

The dollar/Singapore dollar was at 1.3598 at 8:48 A.M. SGT after trading in a 1.3581 to 1.3614 range on Tuesday, according to DZHI data.

The dollar/Malaysian ringgit was at 4.1300 at Tuesday’s close after trading in a 4.1100 to 4.1331 range during the session, according to DZHI data.

The dollar/Indonesian rupiah was at 14,210 at Tuesday’s close after trading in a 14,180 to 14,225 range during the session, according to DZHI data.

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