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.

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