How long will the dollar decline last? What drives the sterling?
If Theresa May wins the parliamentary vote, she will have another two months until May 22. The sterling rose a quarter percent to $ 1.3140. This has already become a common occurrence. Every time there is news about the transfer, the market responds positively and the pound grows.
The dollar is weakening while the pound rose slightly on the news that Prime Minister Theresa May has won time to decide when and how Britain will leave the EU. if the country's parliament next week rejects the proposed Brexit plan for the third time, the leaders of the European Union gave Britain a reprieve for two weeks until April 12. Moreover, in case that Theresa May wins the parliamentary vote, she will have another two months until May 22. The sterling rose a quarter percent to $ 1.3140. This has already become a common occurrence. Every time there is news about the transfer, the market responds positively and the pound. In addition, the Bank of England left the interest rates unchanged.
The dollar paired against the yen is also a problem, despite a slight decline in inflation in Japan. In February, the core consumer prices rose 0.7 percent year on year. The data underscores the weakness of the Japanese economic recovery as sharpening trade tensions between the United States and China and China's slowdown in growth affect exports and business sentiment. In relation to the yen, the dollar fell by 110.78 yen. Three out of four Japanese companies expect the trade conflict between the United States and China to last at least until the end of 2019, which contrasts sharply with market hopes that Presidents Donald Trump and Xi Jinping may soon make a deal.
In general, markets will need a few more days and sessions in order to understand and regain the recent changes in the position of the Fed. Given the impact of further developments related to trade and geopolitical factors, investors will hope for a more relaxed trading environment in the coming weeks.The material has been provided by InstaForex Company - www.instaforex.com
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