Pound Trades in Wide Range Driven by Brexit Headlines

The Sterling pound today traded in a wide range against the US dollar driven by multiple Brexit headlines as the deadline for Britain’s exit from the EU looms. The GBP/USD currency pair today traded in an almost 100-pip range as investors reacted to different headlines most of which indicated that a Brexit deal was not close to being done.
The GBP/USD currency pair today traded in a range marked by a high of 1.3122 and a low of 1.3032 and was near the lows at the time of writing.
The currency pair rallied higher in the Asian session and into the early London session driven largely by broad-based US dollar weakness. The pair headed lower shortly into the London session as it emerged that talks between the opposition Labour Party and ruling Conservative Party had not yet borne fruit. A meeting between British Prime Minister Theresa May and German Chancellor Angela Merkel appeared to be successful as the German leader hinted at a longer extension. The PM’s meeting with French President Emmanuel Macron was underway at the time of writing with the French leader having taken a tough stance on Brexit. These meetings are crucial ahead of tomorrow’s emergency EU summit.
The cable’s performance today was largely driven by Brexit developments and the greenback’s weakness as tracked by the US Dollar Index, which hit a low of 96.86 today.
The currency pair’s short-term performance is likely to be influenced by tomorrow’s multiple UK macro releases and the EU Summit .
The GBP/USD currency pair was trading at 1.3033 as at 17:36 GMT having dropped from a high of 1.3122. The GBP/JPY currency pair was trading at 144.84 having fallen from a high of 146.06.

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