Pound Drops on Brexit and Political Jitters Amid BoE Speeches

The  British pound today declined slightly against the  US dollar even as  Brexit jitters continued to  weigh down the  cable. The  pound was further affected by  the  DUP’s resistance to  the  current Brexit deal given that Theresa May needs the  10 votes from DUP members led by  Arlene Foster in  order to  have a  majority in  the  House of  Commons.
The  GBP/USD currency pair today traded between a  high of  1.2883 and  a  low of  1.2822 and  was within this range at  the  time of  writing.
The  currency pair traded in  a  tight consolidative range during the  Asian session before expanding its trading range starting in  the  early European session. Brexit uncertainty continued to  plague the  currency pair after Spain stated that it would not support the  current Brexit deal if the  text on  Gibraltar was not changed. The  fact that the  DUP   increased pressure on  Theresa May’s government regarding the  Brexit deal also affected the  cable’s gains. The  pair rallied briefly following the  speech by  Bank of  England Governor Mark Carney in  Parliament where he sounded optimistic about a  smooth Brexit.
During the  Parliamentary hearing of  the  BoE’s November inflation report, Carney stated that a  no-deal Brexit would present an  unusual situation for  the  UK. The  BoE’s Chief Economist Andy Haldane also stated that Brexit uncertainty was negatively affecting UK businesses.
The  currency pair’s future performance is likely to  be affected by  Brexit headlines and  tomorrow’s UK public sector finances report.
The  GBP/USD currency pair was trading at  1.2840 as  at  14:44 GMT having dropped from a  high of  1.2883. The  GBP/JPY currency pair was trading at  144.45 having declined from a  high of  144.92.

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