Labour Fail to Seize Parliamentary Agenda

GBP

British lawmakers on Wednesday defeated an attempt led by the opposition Labour Party to try to block a no-deal Brexit by seizing control of the parliamentary agenda from the government.

Lawmakers voted 309 to 298 against the measure, which would have given opponents of leaving the European Union without an exit deal guaranteed time in parliament on June 25 to introduce legislation.

Britain’s ruling Conservative Party is searching for a new leader after Prime Minister Theresa May resigned, having failed three times to persuade parliament to back her Brexit deal.

That has spurred some of those hoping to succeed her - including front-runner Boris Johnson - to promise that they will not delay Brexit beyond its current scheduled date of Oct. 31.

Lawmakers in all the opposition parties, and some in the Conservatives, fear that a no-deal could inflict serious economic and political damage on Britain, and have vowed to find a way to try to prevent it.

USD

The U.S. dollar was modestly higher on Wednesday as trade tensions and U.S. interest rate policy remained in focus, after briefly weakening earlier on data showing that U.S. consumer prices barely rose in May.

The greenback has come under pressure as tepid inflation and weakening economic data adds to bets that the Federal Reserve is closer to cutting interest rates. Fed officials, including Chairman Jerome Powell, have sought to explain low price pressures as being transitory.

The Fed is not widely expected to cut rates when it meets on June 18-19, though investors will be watching for any new signals that a cut is getting nearer. Low inflation is a concern for the Fed at the same time as the U.S.-China trade war threatens to derail global economic growth.

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