Brexit: May seeks a new extension

Daily Analysis - 05/04/2019

A year "flexible" extension for UK?


On Friday the BBC reported that Donald Tusk the President of the European Council has suggested allowing the U.K. a year "flexible" delay to depart from the European Union.

The BBC announced that officers of the political and economic bloc would need to match Tusk's plan at a gathering the following week. Tusk’s recommendation will provide the U.K. the flexibility to leave the European Union whenever British legislators support and approve a settlement within the one year limit.

BBC asked Olaf Scholz the German Finance Minister and said: "I hope that the British Parliament will be able to take a decision and that the government and the British Parliament will have something to present to the European Union." and added “Hopefully, in the end, we will have an agreement because this is the best outcome for all the things that are going to happen”.

Asia Markets were slow

On Friday afternoon Asia Markets were slow while traders waited for additional details surrounding a possible trade agreement between China and the U.S.The Nikkei 225 in Japan improved more than 0.40% in midday trade. The movements in Tokyo came following data revealed that Japanese household spending grew less than anticipated in February, increasing 1.7% in February compared to the 2018.


Greenback hits 21-day high

On Friday, The greenback climbed to a 21-day top against the yen. The popular USD boosted by expectations that a possible agreement between the United States and China would be reached soon.

The greenback increased more than 0.80% versus its safe-haven Japanese rival. Another factor like as solid U.S. economic data and general advancement in risk appetite gave also strong support to the greenback.


Oil reached $70

On Thursday Brent oil advanced, hitting a top of $70 per barrel for the first time in almost half a year. That was expected due to the shortage of the global supply and even outweighed the pressure from the increasing U.S. production. Brent futures reached $70 its highest level since late 2018, when it last exchanged over $70. The international benchmark for oil prices ended 9 cents higher.


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