British Pound Rallies to 3-Week Highs on New Year’s Eve

The  British pound today rallied higher against the  US dollar largely due to  high selling pressure on  the  greenback during the  European session. The  thin trading activity witnessed in  the  markets on  the  last trading day of  2018 and  Brexit developments might have also contributed to  the  spike higher.
The  GBP/USD currency pair today rallied from a  low of  1.2678 to  a  high of  1.2780 in  the  mid-European session driven by investor sentiment.
The  currency pair’s rally was largely caused by  negative investor sentiment towards the  US dollar. The  Sterling pound could also have gotten a  respite due to  a  news report by  the  UK Telegraph stating that British MPs are working on  a  plan to  delay Brexit by  up to  a  few months. This plan is to  counter a  move by  the  British Prime Minister Theresa May to  wear down her opponents by  delaying the  vote on  her Brexit deal to  the  last minute. Given that MPs from both the  Labour Party and  the  Conservative Party are working together on  this plan, there is a  good chance it will succeed.
The  US dollar opened today’s session in  a  much stronger position following yesterday’s tweet by  President Donald Trump regarding the  progress made in  the  US-China trade talks. This kept the  cable in  a  consolidative phase during the  Asian session.
The  cable’s short-term performance will likely be influenced by  geopolitical events up to  tomorrow’s New Year’s holiday.
The  GBP/USD currency pair was trading at  1.2778 as  at  12:23 GMT having rallied from a  low of  1.2678. The  GBP/JPY currency pair was trading at  140.46 having risen from a  low of  139.96.

If you have any questions, comments or opinions regarding the Great Britain Pound,
feel free to post them using the commentary form below.