Sterling pushed higher again in Asia on Friday with 11-week GBP/USD highs following reports that the Northern Ireland DUP could support the Brexit Agreement in next week’s vote.

The dollar was underpinned by solid PMI data, especially as Euro-zone weakness reinforced expectations of US growth out-performance.

Dovish rhetoric from ECB President Draghi pushed the Euro lower with EUR/USD hitting 5-week lows just below 1.1300.

Sterling pushed higher again in Asia on Friday with 11-week GBP/USD highs following reports that the Northern Ireland DUP could support the Brexit Agreement in next week’s vote.

Oil prices made net gains despite a strong inventory build as markets monitored the situation in Venezuela.

Equity markets advanced on Friday despite uncertainty over US-China trade talks.

Sterling was unable to secure further buying in early European trading with pressure for a correction after sharp gains the previous day. As parliamentary manoeuvres continued, there were renewed doubts whether the opposition Labour Party would back amendments specifically ruling out calls for a second referendum. MPs concentrated their efforts on securing backing for several amendments which would effectively block a ‘no-deal’ Brexit and extend Article 50.

The Euro retreated to near 0.8680 and a rebound faltered quickly amid wider single-currency selling and declined to 9-month lows below 0.8670. Early in Friday’s Asian session there were reports that the Northern Ireland DUP had privately agreed to support Prime Minister May’s Brexit plan if there was a time limit on the backstop.

Although there was still a high degree of uncertainty, Sterling secured fresh buying interest with 11-week GBP/USD highs above 1.3100. GBP/EUR rose further towards 1.1600 with further choppy trading likely on position adjustment ahead of the weekend.

Economic Calendar

Expected Previous
09:00 German Business Expectations(JAN) 97 97.3
09:00 IFO - German Current Assessment(DEC, 2018) 104.2 104.7
09:00 German IFO Business Climate Index(DEC, 2018) 100.7 101
09:30 GBP BBA Mortgage Approvals 39.0K 39.4K
13:30 USD Durable Goods Orders Ex Transportation(DEC, 2018) 0.30% 0.40%
13:30 USD Durable Goods Orders (M/M)(DEC, 2018) 1.60% -4.30%
18:00 USD Baker Hughes US Oil Count - 852

*All rates shown are indicative of interbank rates and should only be used for indication purposes only. It is important to note that foreign exchange rates fluctuate and that rates may vary depending on the amount and the base currency that is purchased or sold. Rates are correct as of 8:00am UK time. CentralFX are not responsible for the rates shown.