Big Day Ahead For The GBP/USD As May Takes The Stage
The pound has been on a sharp decline in recent weeks amid uncertainty over the progress of Brexit negotiations. Today, British PM Theresa May will be be outlining a new plan for how the UK will work with the Eurozone, post-Brexit. May’s speech is expected to have a major impact on the sterling. If her comments “clear the fog”, the GBP could be supported while if she spreads a fresh layer of uncertainty, the Brexit-sensitive sterling could plummet to new lows. It is important to note, that May recently rejected a proposal from the EU Commission and as yet there has not been any kind of consensus on what is the best course of action.*
Dollar Slips On Trump’s Tariff Decision
The dollar sagged on Friday, after U.S. President Donald Trump announced new tariffs on steel and aluminum. Prior to Trump’s announcement, the dollar had rebounded from its recent three-year lows on some hawkish comments by the new Federal Reserve Chairman Jerome Powell. The dollar dropped against the yen this morning, after the Trump administration sparked fears of an imminent trade war by imposing new tariffs on industrial metals. President Donald Trump announced he would impose hefty tariffs on the two metals to protect U.S. producers, risking retaliation from major trade partners like China, Europe and neighboring Canada.The weaker dollar left room for Gold prices to edge slightly higher after falling to two month lows in the previous session.**
Oil Prices Set For Weekly Decline
U.S. oil prices edged lower on Friday, after three days of declines, extending a selloff on Wall Street after new tariffs on steel and aluminium raised fears of a trade war. U.S. West Texas Intermediate (USOIL) crude was down 11 cents at $60.88 as of 7:40 GMT after touching a two-week low of $60.18 a day earlier. It is important to note that WTI (USOIL) is currently on track for a 4 percent drop this week.***
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*Source: Investing
**Source: Reuters
***Source: CNBC
