Sterling held on to its gains from earlier in the week as investors placed further weight behind the chance of a delay to the Brexit deadline and belief grew around the likelihood that a no-deal would be avoided. The pound spent the majority of the day within touching distance of 1.17 against the single currency while cable maintained its position above 1.33 from midday onwards.
Last night MP’s gave their backing to a proposal put forward asking for a change to the Brexit date, should parliament vote in favour of delaying the UK’s departure. Another amendment put forward by the Labour party to keep the UK in a customs union with the EU after Britain leaves was voted down and the pound held its ground as the votes were counted.
Elsewhere, two days of meetings between the United States and North Korea ended in a stalemate as the two sides failed to agree on the denuclearisation of the Korean peninsula. The Swiss franc and Japanese yen cemented their safe-haven status, both gaining, as Donald Trump and Kim Jong Un couldn’t reach an understanding. The Japanese yen gained 0.2% against the dollar while the Swiss franc managed to take 0.3% from the greenback as President Trump blamed his North Korean counterpart for the lack of agreement stating his demands to lift sanctions imposed by the US scuppered any progress.
Today’s key events
A mixed bag of data arrived this morning from the eurozone, with German data missing expectations, Spanish CPI hitting the mark and French figures outperforming.
This afternoon, the US will release its GDP figures for the previous quarter with a decline from the last reading forecast.