The British pound today rallied higher against the US dollar in the European session amid growing support of Theresa May‘s Brexit deal among UK lawmakers. The GBP/USD currency pair today headed lower in the American session amid growing geopolitical fears, which caused the US dollar to rally as investors sought safety.
The GBP/USD currency pair today rallied from a session low of 1.3166 to a high of 1.3248 before retracing some of its gains.
The currency pair headed lower in the Asian session as doubts regarding Brexit and fears about the global economy drove the pair lower. The pair’s decline was further driven by investor concerns about a rate cut by the Reserve Bank of New Zealand as well as weak Chinese industrial profits. The pair’s rally was driven by growing support for Theresa May’s Brexit deal as more leaders indicated their support for the deal. However, comments by Jacob Rees-Mogg indicating that he may not support the deal as well as the Irish DUP‘s continued opposition to the deal limited the cable’s gains.
The cable headed lower in the early American session as the greenback rallied higher as tracked by the US Dollar Index, which hit a high of 96.98. However, it soon recovered despite the UK speaker, John Bercow‘s opposition to a second vote on the same Brexit deal amid positive investor sentiment towards the Sterling.
The currency pair’s future performance is likely to be heavily influenced by Brexit developments and tomorrow’s multiple US releases.
The GBP/USD currency pair was trading at 1.3226 as at 18:13 GMT having rallied from a low of 1.3166. The GBP/JPY currency pair was trading at 146.11 having risen from a low of 149.50.
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