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Pound Little Changed After Parliament Takes Control of Brexit Process

Investing.com - The British Pound was little changed on Tuesday in Asia after Parliament took control of the Brexit process from Prime Minister Theresa May.

The GBP/USD pair slipped 0.1% to 1.3193 by 11:33 PM ET (03:33 GMT).

The Brexit saga continues after the House of Commons voted 329 to 302 on Monday in the U.K. to take control of the Brexit process from May.

Lawmakers are now scheduled to vote on a range of withdrawal options later on Wednesday.

Last week, the Brexit date, originally set for 29 March, was postponed by at least two weeks to give May some time to come up with a better Brexit solution.

However, May said on Monday that she still lacked support to put her Brexit deal, which was rejected twice earlier this year, to a third vote.

Meanwhile, the U.S. dollar index that tracks the greenback against a basket of other currencies edged down 0.1% to 96.018.

With little market-moving economic data point on the calendar, investor focus continued to centre on falling treasury yields following an inversion of part of the yield curve last week.

On Friday, the spread between 3-month Treasury bills and 10-year note yields inverted for the first time since 2007 after U.S. manufacturing data missed estimates.

An inverted yield curve is widely known as a powerful indicator to predict a recession. A yield curve inversion has preceded every recession over the past 60 years.

The USD/JPY pair edged up 0.1% to 110.09.

The AUD/USD pair rose 0.2% to 0.7127 while the NZD/USD pair also gained 0.1% to 0.6913 following the release of better-than-expected New Zealand trade balance numbers.


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