Dollar Climbs Against British Pound On Article 50 Plans

WASHINGTON (Alliance News) - The dollar is little changed against the Euro and the Japanese Yen ...

Alliance News 20 March, 2017 | 6:23PM
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WASHINGTON (Alliance News) - The dollar is little changed against the Euro and the Japanese Yen Monday afternoon, but is climbing against the British pound. The lack of US economic data is keeping some investors on the sidelines at the start of the new trading week. However, today's announcement on the UK's Brexit plans has sparked the gains against the pound sterling.

British Prime Minister Theresa May will invoke the Article 50 of the Lisbon Treaty next Wednesday, March 29, thus formally beginning the process of exiting the EU and paving the way for talks on trade and future relations, which should conclude in two years.

The buck has climbed to around USD1.2345 against the pound sterling Monday afternoon, from an early 3-week low of USD1.2435.

The average asking prices for a house in the UK increased further in March, the latest survey from property tracking website Rightmove showed on Monday. House prices in England and Wales climbed 1.3% month-over-month in March, following a 2.0% rise in February.

The dollar slipped to an early low of USD1.0777 against the Euro Monday, but has since rebounded to around USD1.0735.

The Eurozone job vacancy rate increased in the fourth quarter, Eurostat reported Monday. The job vacancy rate rose marginally to 1.7% in the fourth quarter from 1.6% a quarter ago.

Eurozone hourly labor cost grew at a faster pace in the fourth quarter, figures from Eurostat showed Monday. Hourly labor cost increased 1.6% year-on-year in the fourth quarter, faster than the 1.4% rise a quarter ago.

Germany's producer prices increased at the fastest pace in more than five years in February, figures from Destatis showed Monday.

Producer prices advanced 3.1% in February from prior year, the fastest since December 2011, when prices gained 3.5%. Prices had climbed 2.4% in January.

Nonetheless, the annual rate was slightly slower than the 3.2% rise economists had forecast.

The greenback has retreated to around Y112.585 against the Japanese Yen this afternoon, from an early high of Y112.896.

Copyright RTT News/dpa-AFX

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