Sterling retreated sharply as the House of Commons Speaker ruled that there could not be another vote on the same Brexit motion.

The dollar registered limited net losses amid expectations of a dovish Fed tone with lower yields also sapping support.

Sterling retreated sharply as the House of Commons Speaker ruled that there could not be another vote on the same Brexit motion, but secured strong support on dips.

Crude was boosted by evidence of lower US inventories and OPEC supply cuts with gains to 5-month highs for global benchmarks.

Commodity currencies were unable to secure any traction despite gains in oil and metals.

Equity markets drifted slightly from 5-month highs amid underlying caution over global growth trends.

Precious metals secured limited net gains on a softer dollar.

Sterling lost ground ahead of Monday’s New York open as Brexit developments continued to dominate. There was no move from the Northern Ireland DUP to accept the Withdrawal Agreement and, without their support, there was little chance that key Conservative MPs would switch to accept the deal. There was also some speculation that the EU would have to hold an emergency Summit on March 28th to avoid a disruptive EU exit.

Sterling dipped sharply towards the European close following a ruling by the House of Commons Speaker than parliament could not vote on the same motion again. This move effectively blocked a third meaningful vote this week ahead of the EU Summit. In choppy trading, there was a GBP/USD dip below 1.3200 while GBP/EUR strengthened to near 1.1700.

Bercow’s ruling triggered yet another layer of uncertainty and confusion, but Sterling found solid support on dips and GBP/USD rallied to above 1.3250. There was speculation that Prime Minister May would ask the EU for an Article 50 extension of 9-12 months.

Markets still assumed that Brexit would be delayed and Sterling edged stronger with GBP/EUR around 1.1700 as higher oil prices offered support. The market will be monitoring UK labour-market data later on Tuesday with a focus on average earnings.

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