- UK parliament rejects most amendments on Brexit, revives anxiety
- Traders await clues from Fed on balance sheet stance
- Criminal charges against Huawei cloud U.S-China trade talks
- Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
(Updates market action after Brexit amendment votes, adds quote)
Sterling fell on Tuesday as British lawmakers rejected most amendments seeking for Britain to avoid leaving the European Union without a deal, reviving worries of a chaotic withdrawal from the trading bloc that would damage the U.K. economy.
British lawmakers failed to pass several proposals that take a "no-deal" Brexit off the table. Instead they voted to instruct Prime Minister Theresa May to demand from the EU to replace the Irish border arrangement as a part of Brexit, but Brussels said it will not change.
"We just don't have a resolution yet," said Ben Randol, senior FX strategist at Bank of America Merrill Lynch in New York. "It just sets up more conflicts going forward."
In late trading on Tuesday, the pound GBP=D3 fell 0.71 percent to $1.3062, retreating further after hitting its highest since mid-October last week.
The euro EURGBP=D3 jumped 0.80 percent at 87.53 pence, reversing its earlier fall prior to the amendment votes.
The euro zone single currency EUR=EBS was little changed at $1.1433 and EURJPY=EBS marginally higher at 125.09 yen.
The dollar, euro, yen and other major currencies were locked in narrow trading ranges, with traders reluctant to take big positions due to uncertainty over the U.K. parliamentary vote.
Traders also await possible clues from the Federal Reserve on whether it might pause from its current rate-hike campaign. Fed policy-makers began a two-day policy meeting on Tuesday.
Investors expect the Fed, the U.S. central bank, to adopt a more cautious stance, pressured by signs of a peak in corporate earnings and the threat of an economic slowdown at home and globally.
Fed policy-makers are expected to release a policy statement on Wednesday at 2 p.m. (1900 GMT), followed by a press conference with Fed Chairman Jerome Powell.
Adding to investors' jitters were criminal charges against China's Huawei Technologies Co. Ltd. for violating U.S. sanctions against Iran. This ratcheted up tensions between Washington and Beijing before trade talks this week.
"We don't have a lot of clarity of these global risk events," Randol said.
An index that tracks the dollar against a basket of currencies .DXY was little changed at 95.815. It touched a two-week low during the session.
The Chinese yuan was firm at 6.748 per dollar CNY= in offshore markets, scaling back from Monday when it reached its strongest since July.
======================================================== Currency bid prices at 4:34PM (2134 GMT)Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1435 $1.1433 +0.02% -0.30% +1.1451 +1.1411 Dollar/Yen JPY= 109.4200 109.3400 +0.07% -0.76% +109.5300 +109.1300 Euro/Yen EURJPY= 125.11 124.93 +0.14% -0.88% +125.2400 +124.6900 Dollar/Swiss CHF= 0.9949 0.9914 +0.35% +1.38% +0.9957 +0.9908 Sterling/Dollar GBP= 1.3061 1.3162 -0.77% +2.38% +1.3198 +1.3058 Dollar/Canadian CAD= 1.3275 1.3262 +0.10% -2.65% +1.3286 +1.3242 Australian/Doll AUD= 0.7151 0.7165 -0.20% +1.45% +0.7176 +0.7139 arEuro/Swiss EURCHF= 1.1375 1.1333 +0.37% +1.07% +1.1379 +1.1333 Euro/Sterling EURGBP= 0.8752 0.8681 +0.82% -2.58% +0.8757 +0.8657 NZ NZD= 0.6828 0.6828 +0.00% +1.65% +0.6861 +0.6816 Dollar/DollarDollar/Norway NOK= 8.4998 8.5107 -0.13% -1.61% +8.5190 +8.4771 Euro/Norway EURNOK= 9.7183 9.7275 -0.09% -1.89% +9.7358 +9.6930 Dollar/Sweden SEK= 9.0676 9.0515 +0.20% +1.16% +9.0802 +9.0365 Euro/Sweden EURSEK= 10.3685 10.3478 +0.20% +1.02% +10.3705 +10.3440 <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ G10 FX MTD http//tmsnrt.rs/2B9sf8ZGRAPHIC-Brexit economic impact http//tmsnrt.rs/2Rl7mxJ GRAPHIC-Bumpy road to Brexit http//tmsnrt.rs/2PtGWYL
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