The pound is rising amid market optimism and ahead of a critical debate in parliament. MPs will discuss a controversial deal that violates the Brexit accord with the EU. AstraZeneca’s renewal of its coronavirus vaccine test is contributing to a better market mood, favourable for stocks and weighing on the dollar.
GBP/USD trades near 1.28, affected by the escalation in the EU-UK relations. The House of Commons will debate the controversial Internal Market Bill, which breaks international law and angers the EU bloc. Brussels announced that if the bill is not rescinded by the end of the month, it would slap sanctions.
EUR/USD is on the rise despite rising COVID-19 cases in the old continent. Several members of the European Central Bank reiterated their stance that the euro’s value impacts inflation but that the ECB does not target it.
USD/JPY eases to 106.00. The yen is marginally higher amid broad dollar weakness, as Cabinet Secretary Yoshihide Suga will likely be elected by the ruling LDP Party to succeed outgoing Prime Minister Shinzo Abe.
Oil prices have stabilized after the fall. OPEC and non-OPEC members will convene later in the week to discuss extending production cuts. Hurricanes are brewing in the Gulf of Mexico and could boost crude prices. Gold on the other hand has been trading in a range around $1,940-50.
It is a quiet start of the new trading week, amid an absence of relevant market-moving economic releases, with only the Eurozone Industrial Production coming at 09:00 GMT.
Pound edges higher ahead of Parliament’s critical debate – eyes Eurozone Industrial Production
Published on 2020-09-14 07:51
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