Dollar on track to snap losing streak, British pound pulls back from 9-month high


The U.S. dollar was on track to break a four-day losing streak on Thursday, climbing higher against its rivals amid renewed uncertainty over Sino-American trade negotiations and weakness in European currencies. The British pound retraced its gains from a day ago as traders await further developments on Brexit.

Don’t miss: 15 days until Brexit: Here’s what happens next

The ICE U.S. Dollar Index














DXY, +0.33%












a measure of the currency against six major rivals, climbed 0.2% to 96.728 on Thursday, aiming for its first gain in five sessions. The euro














EURUSD, -0.2207%












 slipped 0.2% to $1.1303.

The British pound














GBPUSD, -0.8173%












 pulled back from the nine-month high it touched after the U.K. Parliament ruled out a no-deal Brexit on Wednesday. Sterling also recorded its biggest one-day move in nearly two-years on Wednesday, according to Dow Jones Market Data. The pound last bought $1.3278, down from $1.3337. Against the euro














EURGBP, +0.5768%












sterling also slipped, with one euro last buying £0.8514, up 0.2%.

“In terms of its cumulative return week-to-date, the pound has traded like there is a clear way forward to the removal of ‘cliff-edge’ risk, a ‘soft Brexit’ or no Brexit. We’re not confident there is a clear way forward to anything,” wrote Stephen Gallo, European head of FX strategy at BMO.

Parliament’s rejection of a no-deal outcome was part of three key votes on the U.K.’s exit from the European Union this week. On Tuesday, Parliament rejected Prime Minister Theresa May’s Brexit deal, while on Thursday, lawmakers will vote on whether to extend the Brexit deadline until after March 29.

Market participants expect an extension. So far all votes have been in line with expectations.

President Donald Trump, meanwhile, tweeted that the U.S. was looking forward to negotiating a trade deal with the U.K.

During a meeting with Irish Prime Minister Leo Varadkar, Trump also said he was surprised at how badly the Brexit negotiations had gone but that holding a second referendum would be unfair.

Elsewhere on the trade front, a meeting between Trump and Chinese President Xi Jinping has been delayed to at least April, according to a Bloomberg report. The two heads of state were initially expected to meet in March, though a date had not been set.

Check out: China stocks and yuan may have more room to rally, says strategist

China’s yuan weakened against the dollar amid mixed economic data that also weighed on Chinese stocks














SHCOMP, -1.20%













000300, -0.69%












One dollar last bought 6.7229 yuan














USDCNY, +0.2371%












 in Beijing, up 0.2%, and 6.7230 yuan














USDCNH, +0.3119%












 in the offshore market, up 0.3%

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