The dollar loses ground and is hit by the leap of the pound after the Brexit official leaves

The dollar loses ground and is hit by the leap of the pound after the Brexit official leaves

The dollar was losing ground to its main rivals on Monday, partly impacted by the pound's plunge following British Brexit Secretary David Davis' resignation.

The ICE US Dollar Index

DXY, -0.20%

, which measures the dollar against six other currencies, fell to 93,827, from 94,012 late Friday in New York.

The meter lost ground on Friday as investors assessed a more-than-expected US job market report, and the Trump government and China officially levied import duties. The indicator fell 0.8% in July and has reduced its profit since the beginning of the year to 1.9%.

Read opinion: Trump's protectionism will not displace the dollar as a reserve currency

The pound

GBPUSD, + 0.4290%

recently switched hands at $ 1,3328, versus $ 1,3287 later Friday in New York.

Sterling climbed higher as Davis resigned from his post as Chief Negotiator for the United Kingdom on Sunday evening. On Friday, Prime Minister Theresa May had united the warring factions of her cabinet behind a new Brexit plan calling for a UK-EU free trade zone for goods but British autonomy over regulation for many services.

The British currency may have attracted buyers based on comments from Davis suggesting that May should keep her job.

"The news from Davis' departure led to a sell-off in cable, as fears of a Euro-skeptic uprising against the Prime Minister led to a vote of no confidence and early voting," said Boris Schlossberg, managing director of FX strategy at BK Asset Management, in a note Monday.

Davis noted, however, that he would not bear to challenge PM May, and the market quickly realized that the exit of Hard-Line Brexiteers could strengthen Ms. May's "soft-Brexit" strategy. "

The British government appointed Dominic Raab, a former housing minister, as Davis' successor on Monday.

Read: Pound jumps to Brexit secretary, but the next few days look critical

And see: FTSE 100 moves forward after the Brexit minister quits

The Euro

EUR USD, + 0.3151%

He bought $ 1.1764, modest from $ 1.1744 late Friday in New York, while the dollar bought 110.47 Japanese yen

USDJPY, -0.04%

, little changed from 110.46 on Friday.

Leave a comment

Send a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.