Forex – free progresses towards the Brexit, the dollar slips before Powell

© Reuters. – The pound sterling is on the front of the stage in the beginning of the european day on Tuesday, after the two main political parties are close to each other to avoid Brexit difficult.

The british pound rose 0.4% to 1,3150 USD ( GBP / USD) at 3: 55 am ET (08h55 GMT), after reaching a peak of 1,3161 $ session, a level achieved for the last time on 31 January last. The book has also reached a high of nine months of 1,1590 against the euro earlier.

The first british minister, Theresa May, will officially eliminate “Brexit” without agreement at a cabinet meeting later in the day, thus opening the door to a period of several weeks or months before the release date scheduled for march 29, said the newspaper Sun.

This news follows an initiative taken last night by the labor party opposition to support a second referendum on the Brexit if no parliamentary majority can be found for a withdrawal agreement that would ensure a smooth transition to a life outside of the european Union.

This info relieves investors, who fear that Britain will leave the EU without an agreement.

Elsewhere, the u.s. dollar was down against most other major currencies, the market players are looking forward to seeing the testimony of the president of the federal Reserve, and Jerome Powell, in front of a senate committee on u.s. later in the session.

This comes after the us central bank has adopted a position more cautious about future increases in interest rates last month.

“The market will look for signs that the Fed is comfortable with the current state of the policy,” said Steven Dooley, a strategist in the field of foreign exchange at Western Union Business Solutions. “The markets will also want to have details on the eventual end of the program of reduction of the Fed’s balance sheet.”

The greenback has lost 110% against the japanese yen to 110,85 (USD / JPY), returning to its highest level since the end of December.

The dollar index, which measures the greenback’s strength against a basket of six major currencies, remained stable at 96,27.

In the future, investors will probably be data on housing starts and building permits in the United States for the month of December, which should appear later in the day. A report on consumer confidence for February is also on the agenda.

– Reuters contributed to this report

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