Pound Rallies on Brexit Bill Passage, Later Falls on Dovish BoE Stance

The  pound today rallied briefly against the  US dollar during the  Asian session after the  UK Parliament approved the  government’s Brexit withdrawal Bill last night. The  GBP/USD currency pair’s rally was short-lived as  it later fell in  the  early London session as  after the  European Union announced a  series of  meetings to  discuss Brexit.
The  GBP/USD currency pair today rallied to  a  high of  1.3091 in  the  Asian session before falling to  a  low of  1.3048 in  the  London session and  was within this range at  the  time of  writing.
The  currency pair rallied higher earlier today as  investors reacted to  the  vote by  UK lawmakers in  the  House of  Commons to  approved the  current Brexit deal. Many expected Boris Johnson‘s Brexit bill to  pass given the  strong majority his Conservative Party enjoys after December’s snap elections. However, trade discussions with the  EU may not be smooth after the  EU’s chief trade negotiator Michel Barnier announced a  series of  meetings starting today. The  block wants to  get on  the  same page before the UK leaves the  union on  January 31st. Johnson has promised to  complete the  trade negotiations by  December 31st with zero chances of  an  extension.
Dovish comments by  Sylvia Tenreyro a  member of  the  Bank of  England‘s top policy making organ, the  Monetary Policy Committee also drove the  pair lower. Tenreyro echoed the  dovish stance outlined by  BoE Governor Mark Carney yesterday, which weakened the  pound.
The  currency pair’s short-term performance is likely to  be affected by  the  release of  the  US non-farm payrolls report at  13:30 GMT.
The GBP/USD currency pair was trading at 1.3057 as at 11:03 GMT having fallen from a high of 1.3091. The GBP/JPY currency pair was trading at 143.13 having dropped from a high of 143.47.

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