- US Dollar Index extends rebound, turns positive for the week.
- Irish PM says no one would welcome a 9-month extension.
- Manufacturing activity softens in the U.S.
After closing the previous two days in the negative territory, the GBP/USD pair gained traction and recovered to 1.32 area. As of writing, the pair was trading at 1.3188, adding 0.62% on a daily basis.
The disappointing data from the euro area earlier today put the shared currency under heavy selling pressure and helped the GBP find demand, as confirmed by the sharp drop witnessed in the EUR/GBP pair. Moreover, the fact that the EU granted an extension to the Article 50 negotiating period until April 12 helped the British pound by bringing in some clarity on Brexit.
Commenting on the latest Brexit developments, Irish Prime Minister Leo Varadkar earlier today said that there was Brexit fatigue across both the EU and the UK and no one would welcome a 9-month extension. Regarding the different options the government will be reportedly presenting on parliament, Varadkar argued that customs union would solve a lot of problems they were facing and that he would be delighted if parliament chose that.
On the other hand, the US Dollar Index preserved its bullish momentum on Friday and erased all of this week's losses to turn positive on the weekly chart as the greenback seems to be taking advantage of the risk-off flows as reflected by the 4% drop seen in the 10-year T-bond yield.
Earlier today, the data published by the IHS Markit revealed that the business activity in the manufacturing and service sectors in the U.S. expanded at a softer rate than expected in March.
Technical levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD bounces to 0.6450, shrugs off mixed Australian jobs data
AUD/USD is rebounding to test 0.6450 amid renewed US Dollar weakness in the Asian session on Thursday. The pair reverses mixed Australian employment data-led minor losses, as risk sentiment recovers.
USD/JPY drops to test 154.00 on Japan's intervention warnings
USD/JPY extends losses to test 154.00 in Asian trading on Thursday. The pair is undermined by the latest US Dollar pullback, Japan's FX intervention risks and a softer risk tone. Focus shifts to more Fedspeak and US data.
Gold price finds buyers again near $2,355 as USD licks its wounds
Gold price is attempting a tepid bounce in the Asian session, having found fresh demand near $2,355 once again. Gold price capitalizes on a softer risk tone and an extended weakness in the US Treasury bond yields, despite the recent hawkish Fed commentary.
Manta Network price braces for volatility as $44 million worth of MANTA is due to flood markets
Manta Network price was not spared from the broader market crash instigated by a weakness in the Bitcoin market. While analysts call a bottoming out in the BTC price, the Web3 modular ecosystem token could suffer further impact.
Investors hunkering down
Amidst a relentless cautionary deluge of commentary from global financial leaders gathered at the International Monetary Fund and World Bank Spring meetings in Washington, investors appear to be taking a hiatus after witnessing significant market movements in recent weeks.