On Monday, the Sterling pound fell dramatically and hit its lowest levels since last October’s flash crash, over concerns that the UK Prime Minister Theresa May could signal plans to leave the EU’s single market to recover control of UK’s borders from immigrants.
Cable fell as much as 1.5% vs. the Greenback and settled below $1.20, before paring its losses and trading above $1.20.
GBP is trading under pressure and could decline further during the day amid fears that British Prime Minister Theresa is expected to say she favors a clean break from the EU and could announce plans of a "Hard Brexit". Thus, GBP could drop to its lowest level since October.
The U.S. dollar recovered vs. a basket of major currencies and its index, which measures the Greenback’s strength against a trade-weighted basket of currencies, which rose as much as 30 pips to settle at 101.50.
Also on Monday, gold rose to a seven-week high and settled above the psychological level of $1,200. Technically, the yellow metal could be supported today as British Prime Minister Theresa May is expected to discuss plans for a "Hard Brexit" and as Trump will replace Barack Obama in the White House soon.
Oil prices recovered yesterday, as Saudi Arabia said it would strictly adhere to a commitment to cut output. In addition, Saudi Energy Minister said yesterday that the Kingdom would strictly adhere to its output cut commitment; expressing confidence, that OPEC's plan to shore up prices would work. U.S. crude rose as much as 0.05%, to settle above $52.60.
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