Pound Rallies as the British Parliament Debates the Benn Bill

The British pound today rallied from new multi-year lows during the London session amid hopes that British leaders would thwart the government’s attempt to force through a hard Brexit. The GBP/USD currency pair today recovered from multi-year lows below the crucial 1.2000 level as MPs worked hard to pass the Benn bill by Friday in order to stop a no-deal Brexit.
The GBP/USD currency pair today rallied from a multi-year low of 1.1959 to a high of 1.2103 in the American session as British politics took centre-stage.
The currency pair opened today’s session trading with a bearish bias as investors worried about the fact that the UK Parliament is set to be suspended as from last week. However, the bearish trend came to a halt in the early London session as British politicians fought to stop a no-deal Brexit. The House of Commons was still debating the SO24 motion as an emergency bill at the time of writing amid bipartisan support for the bill, which intends to stop a hard Brexit. Conservative Party MP Philip Lee defected to the Liberal Democrats eradicating Boris Johnson’s Parliamentary majority. It seems likely that the MPs will pass the Benn bill by Friday making Johnson’s adjournment a futile attempt.
The weak US ISM manufacturing PMI for August released in the American session also contributed to the pair’s positive momentum. However, the currency pair’s performance continues to be driven by British political events.
The currency pair’s future performance is likely to continue being heavily influenced by Brexit events.
The GBP/USD currency pair was trading at 1.2104 as at 18:17 GMT having recovered from a low of 1.1959.  The GBP/JPY currency pair was trading at 128.24 having rallied from a low of 126.68.

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