Forex – Dollar Holds Gains Despite Falling Bond Yields

© Reuters. – The dollar traded higher against its rivals Wednesday, despite falling U.S. government bond yields, amid concerns over slowing eurozone growth following dovish remarks by European Central Bank President Mario Draghi.

The , which measures the greenback against a trade-weighted basket of six major currencies, rose by 0.16% to 96.38.

The benchmark yield fell below the key 2.40% level as Draghi said the central bank could consider postponing plans to raise interest rates if data pointed to further economic weakness.

slipped 0.08% to $1.1255.

rose 0.16% to $1.3228 as traders awaited further direction on cable as a series of indicative votes on possible options for Brexit is set to get underway later today.

John Bercow, House of Commons Speaker, has selected eight options that will be voted on, ranging from cancelling Brexit to leaving the EU without a deal as U.K. lawmakers try to reach a consensus on the path for Brexit and end the current impasse.

The Norway Plus, or Common Market 2.0 proposal, which has been backed by some members of the U.K government and the opposition is also expected to be on the ballot.

The plan proposes the U.K. joins the European Economic Area and negotiates a temporary customs union until alternative arrangements can be found. The plan, however, goes against May’s red lines on Brexit, including free movement of people, and is also likely to be shunned by Brexit hardliners.

If lawmakers fail to reach a consensus, then support for May’s deal from so-called Eurosceptics in her party could gather steam as they may opt for the prime minister’s version of Brexit rather than risk a prolonged extension or alternative Brexit closely aligned with the rules of the Single Market.

A third vote on May’s deal, which has twice been thwarted, has been shut down, however.

Bercow reiterated that another vote on the deal cannot be brought if it is “substantially the same.”

The results of the vote are expected to be announced before 6 PM ET (22:00 GMT).

The U.K. has until April 12 to reach a consensus on Brexit, which would need to be ratified by the EU. Without a deal, the U.K. could request a prolonged extension or leave without a deal.

May has promised to step down if lawmakers back her deal, but has not given a specific date for her departure.

“I have heard very clearly the mood of the parliamentary party. I know there is a desire for a new approach – and new leadership – in the second phase of the Brexit negotiations – and I won’t stand in the way of that,” May said.

fell 0.16% to Y110.45 as risk-off sentiment sparked demand for the safe-haven yen.

rose 0.18% to C$1.3403 as oil prices slumped, dragging the loonie lower, after data showed U.S. oil supplies unexpectedly fell.

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