Forex Preview: GBPUSD Under Pressure As May Scrambles To Save Brexit Deal

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1. GBPUSD Under Pressure As May Scrambles To Save Brexit Deal
GBP/USD stabilised in early Wednesday morning, after recording steep losses on Tuesday. Specifically, the pair is currently trading at the the 1.2500 critical level as of 8:00 GMT, as Brexit continues to hang over the Cable like a cloud. This week’s massive selloff came after Prime Minister Theresa May’s decision to pull her Withdrawal Proposal at the last minute. May now hopes of pulling eleventh-hour concessions out of the EU but her chances are looking rather slim.  It is important to note that May’s failure to come up with any viable Brexit proposal has caused her to face a no-confidence vote on Wednesday within her own Conservative Party, as lawmakers now seek to topple her from power.*

2. Gold Prices Continue To Climb On Easing Rate Hike Expectations
Gold prices traded steady early on Wednesday, after climbing this week, boosted by expectations of fewer rate hikes by the U.S. Federal Reserve next year. U.S. gold futures inched up 0.06 percent to $1,247.95 per ounce, as of 8:00 GMT. Gold profits were capped by a robust dollar. Specifically, the USD held near a one-month high against its peers on Wednesday, supported by a rebound in U.S. yields and weakness of the pound as the latter continued to struggle with Brexit uncertainty**

3. Oil Prices Continue To Climb
Oil prices climbed in early Wednesday trading, lifted by expectations that an OPEC-led supply cut announced last week would stabilise markets as well as hopes that long-running Sino-American trade tensions could ease. Disruptions to Libyan oil exports after local militia seized the country’s biggest oil field, El Sharara, also contributed to the buoying prices. International Brent crude oil futures (CL_BRENT) were at $60.53 per barrel at 8:00 GMT GMT, up 37 cents, or 0.63 percent from their last close, while U.S. West Texas Intermediate (USOIL) crude futures were at $51.95 per barrel, up 32 cents, or 0.66 percent.***

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*Source: Forbes, Dec 12, 2018, 6:25 AM GMT
**Source: Reuters, Dec 12, 2018, 4:16 AM GMT
***Source: CNBC, Dec 12, 2018, 3:03 AM ET

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