The most recent turn in the ongoing Brexit negotiations led to a rise for the British pound yesterday.
A report from Bloomberg suggested that the country’s Prime Minister, Theresa May, is looking into plans to push back the date of Brexit from its current deadline of March 29th.
It was also announced yesterday that the leader of the opposition Labour Party, Jeremy Corbyn, would back a second referendum – with “remain” one of the options on the ballot paper.
As a result, the pound went up 0.4% in the GBP/USD pair to reach $1.3143. It had earlier managed to reach $1.3149. This was close to a one month high for the currency, which has seen problems in recent weeks as the British government attempts to navigate the turmoil of Brexit.
Elsewhere, the US dollar index, which tracks the American currency in proportion to the performance of several others, went down by 0.1% to 96.329.
The Japanese yen went up by 0.25% in the JPY/USD pair, to 110.80.
This week is a busy one for forex traders, and the economic calendar is packed full.
Today (Tuesday) sees a range of major speeches. British Prime Minister Theresa May will issue a verbal update on the Brexit talks at some point.
Meanwhile, the Chair of the US Federal Reserve, Jerome Powell, is expected in front of the US Congress at 2.45pm GMT.
There’ll also be a speech from the European Central Bank’s Yves Mersch, who sits on the bank’s Executive Board, at 2.30pm GMT.
In terms of data releases, US consumer confidence figures published by the Conference Board will be out at 3pm GMT.
The day will be rounded off by trade balance data for New Zealand covering the month of January. Year on year, this is due to change from $-5,860,000 to $-5,496,000.
On Wednesday, there’ll be a further speech from the President of the German Bundesbank, Jens Weidmann, at 10am GMT.
There will also be a series of data releases from Europe. February’s consumer confidence figures will be out at 10am GMT, as will business climate and service sentiment information.
Japanese retail trade information for the month of January will be out at 11.50pm GMT.
On Thursday, Australian private sector credit information for January will be out at 12.30am GMT. It is expected that this will show a month on month rise from 0.2% to 0.3%.
Swiss gross domestic product information for the fourth quarter of 2018 will be out at 6.45am GMT. This is due to show a quarter on quarter change from -0.2% to +0.4%.
The preliminary German harmonised index of consumer prices for the month of February is due out at 1pm GMT. Month on month, this was last recorded at -1%.
The usual weekly round of jobless claims will be out at 1.30pm GMT. Continuing jobless claims for the week of February 15th were last recorded at 1,725,000.
Initial jobless claims for the week of February 23rd are due to show a shift from 220,000 to 216,000.