The rate of the British currency in the first half of trading on Thursday declines against the US dollar amid continuing political uncertainty in the UK. The pound can expect support from a vote of confidence in the current government, as expressed by the country's parliamentarians the day before.
As of the morning, the pound sterling to the dollar was down to 1.2868 dollars from 1.2881 dollars per pound at the last close. The rate of the single European currency to the dollar fell down to 1,138 dollars per euro from the value of the previous close of 1,1397 dollars per euro.
The dollar against the yen fell to 109 yen per dollar from the level of the last close of 109.08 yen per dollar. The dollar index (the dollar exchange rate to the basket of monetary units of 6 states - key US trading partners) rose by 0.13% to 96.18 points.
The British pound rate was again under pressure after a short-term growth on Wednesday against the background of news that parliament expressed confidence in the UK government. The decision of the Parliament means that British Prime Minister Theresa May will remain at her position and will be required on Monday to submit another draft action in connection with the upcoming Brexit on March 29.
Voting on trust in the government was held after the British parliamentarians rejected the Brexit agreement proposed by May on Tuesday, opening the way to a number of possible scenarios, including the “hard” one - withdrawing the state from the EU or canceling Brexit in general.
Experts believe that it is unlikely that significant changes will be made to May’s plan, so the likelihood that Parliament will again reject it is quite high.
Meanwhile, the price of gold declines on Thursday morning amid a rising dollar against most world currencies, according to trading data and expert comments.
As of the morning, the price of the February gold futures on the New York stock exchange Comex was down $ 2.25, or 0.17%, to $ 1,294.65 per troy ounce. The price of the March silver futures decreased by 0.32% - to 15.58 dollars per ounce.
Pressure on the value of gold on Thursday is exerted by the dollar, which strengthens against most world currencies.
Gold has risen strongly in price lately. But the dollar is also quite high, and this is a counterweight that keeps the value of the precious metal from a sharp jump.
Recall that for five weeks the price of the precious metal remains in a rather narrow range and cannot break through the resistance level of $ 1,300. Consolidation continues. For a clear market dynamics, the price of gold should break the mark of 1300 dollars up or 1275 dollars down.
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