Dollar Surges Against Pound After Brexit Vote Postponed

The dollar is gaining ground against all of its major rivals Monday afternoon. The lack of U.S. economic data is keeping some investors on the sidelines at the start of the new trading week. However, some new Brexit developments have pushed the currency sharply higher against the British pound.

The European Court of Justice ruled the British government could reverse its decision to leave the bloc without the permission of the other 27 EU members.

U.K. Prime Minister Theresa May has reportedly called off tomorrow's Parliamentary vote on Brexit deal as her plan may face defeat amid stiff opposition from Tory rebels. The decision came after the PM failed to get support from enough of Tory MPs who said they were against the deal.

The buck has broken out to nearly an 8-month high of $1.2550 against the pound sterling this afternoon, from an early low of $1.2759.

UK economic growth slowed in the three months to October, mainly due to a fall in car sales and stagnation in manufacturing, as the uncertainty surrounding the country's decision to leave the European Union, dubbed Brexit, intensified.

Gross domestic product grew 0.4 percent in the three months to October, which was slower than the 0.6 percent expansion in the September quarter, figures from the Office for National Statistics showed on Monday. The latest rate of growth was in line with economists' expectations.

Meanwhile, France's economy is set to expand at a slower rate in the fourth quarter than estimated earlier, survey data from Bank of France showed on Monday. The bank revised down its growth forecast for the fourth quarter by 0.2 percentage point to 0.2 percent.

The dollar has climbed to around $1.1350 against the Euro Monday afternoon, from an early low of $1.1442.

Eurozone's investor confidence eased sharply in December and declined for a fourth month in a row, marking the lowest level since the same month in 2014, survey data from Sentix showed on Monday.

The investor confidence index dropped to -0.3 from 8.8 in November, the behavioral research institute said. The latest reading was the lowest since December 2014. Economists had forecast a modest decline in the index to 8.3.

Germany's merchandise exports grew more-than-expected in October and at the fastest pace in five months, preliminary figures from Destatis showed on Monday.

Exports increased a calendar ad seasonally adjusted 0.7 percent from September, when they declined 0.4 percent. Economists had forecast a 0.4 percent gain for October.

Imports rose 1.3 percent monthly after stagnation in the previous month. Economists were looking for a 0.5 percent gain.

The calendar and seasonally adjusted surplus was EUR 17.3 billion in October.

The trade balance was EUR 18.3 billion in October, unchanged from September. Economists had forecast a EUR 17.1 billion surplus.

The greenback has risen to around Y113.190 against the Japanese Yen Monday afternoon, from an early low of Y112.241.