The British pound rose today to a seven-week high against the US dollar at 1.2879, following comments by British Prime Minister Theresa May that the failure to vote on Brexit deal in parliament could lead to the UK staying in the EU.
Markets are looking forward to Tuesday's vote by the British parliament on May's agreement with EU leaders, which appears unlikely to be approved by members of parliament despite Theresa May's efforts. Failure to agree to the deal means Britain will leave without agreement.
On the other hand, both the Australian dollar and the New Zealand dollar fell against the start of trading today amid fears of a slowdown in China's economy after the contraction of China's exports. Australia and New Zealand are China's biggest trading partners.
China's exports unexpectedly fell by the most in two years in December, as imports shrank in a sign of further weakness in the world's second-largest economy in 2019 and deteriorating in global demand. The data also showed that China had the largest trade surplus ever with the United States in 2018, which is what the US president is trying to eliminate.
US crude oil prices fell again near $ 50 a barrel in the wake of Chinese data, signaling weak demand for fuel. Brent crude also fell slightly below $ 60.
