Sterling Pound Rallies As UK Govt Prepares for No-Deal Brexit

The  Sterling pound today rallied against the  dollar on  positive investor sentiment before falling on  Brexit jitters after comments from the  Irish government. The  GBP/USD currency pair later rallied even after the  UK said that it was actively preparing for  a  no-deal Brexit scenario as  the  October 15 deadline approaches.
The  GBP/USD currency pair today fell to  a  low of  1.2846 in  the  early American session before rallying close to  its daily highs of  1.2929 printed earlier in  the  London market.
The  currency pair rallied higher earlier today reversing yesterday’s massive drop before Ireland’s Foreign Minister Simon Coveney said that the  EU’s top negotiator Michel Barnier would not agree to expedited talks unless the UK shifts its stance on state aid. However, the UK’s lead Brexit negotiator  David Frost told reporters that the  UK was willing to  trade on  Australia terms if a  deal could not be reached. The  release of  the  disappointing UK house price index report by  the  Office for  National Statistics also contributed to  the  pair’s initial decline. Cabinet Minister Michael Gove confirmed the  government’s stance saying that preparations for  a  no-deal Brexit were intensifying.
The  cable’s rally during the  American session was fueled mainly by  the  greenback’s weakness as  tracked by  the  US Dollar Index, which hit a  low of  93.56. The  release of  the  FOMC minutes later in  the  session had a  muted impact on  the  pound.
The  currency pair’s future performance is likely to  be affected by  Andrew Bailey’s speech tomorrow and  US dollar dynamics.
The GBP/USD currency pair was trading at 1.2915 as at 20:35 GMT having rallied from a low of 1.2846. The GBP/JPY currency pair was trading at 136.85, having risen from a low of 135.95.
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