London - The dollar rebounded with oil and gold fell, as investors focused on President Donald Trump’s plans to boost growth. The pound fell after a UK court ruled that Parliament must vote on triggering Brexit.
The greenback advanced against most major currencies, reversing declines sparked after Treasury Secretary nominee Steven Mnuchin said a strong US currency could have a negative short-term effect on the economy.
The pound extended losses after judges ruled Prime Minister Theresa May must ask Parliament to trigger the two-year countdown to the UK’s departure from the European Union, handing lawmakers a chance to soften the plan. Gold fell after touching the highest since November while oil climbed above $53 a barrel.
President Trump promised a “very major” border tax and signed an executive order to withdraw the US from the Trans-Pacific Partnership deal, fanning optimism that greater investment will boost growth. Encouragement for dollar buying and a further selloff in bonds could come from any elucidation on the president’s fiscal agenda, according to Kit Juckes, global strategist at Societe Generale SA.
“The driver of a shift higher will be optimism that President Trump’s policies deliver more growth,” Juckes said. “If he starts tweeting about fiscal policy instead of trade policy maybe the bond bears can come out of hibernation again.”
Here are the main moves in markets:
The Bloomberg Dollar Spot Index added 0.1% by 12:12, after dropping as much as 0.3% earlier. It was 0.3% higher against the euro.
The pound slipped 0.4% to $1.249. European stocks halted a three-day decline, led by Italian shares amid reports that Assicurazioni Generali SpA may get investment from Intesa Sanpaolo SpA and Allianz.
West Texas Intermediate crude rose 0.9% to $53.21 a barrel as Iraq said it’s close to implementing its share of pledged output curbs agreed with OPEC to trim bloated global inventories and stabilize the market.
Oil slid 0.9% the previous session after US drillers added the most rigs in more than three years. The yield on the 10-year Treasury rose three basis points to 2.42%.
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