Pound Rallies Despite Brexit Uncertainty and Upbeat US Data

The British pound today rallied higher against the US dollar breaking out of a 3-day trading range amid positive Brexit headlines. The GBP/USD currency pair rallied higher after it emerged that the EU was willing to grant an extension of the October 31st Brexit deadline.
The GBP/USD currency pair today rallied from an opening low of 1.2328 to a high of 1.2475 and was trading near these highs at the time of writing.
The currency pair traded sideways at the start of today’s session before rallying higher in the early London session. This could have been a technical breakout given the trading range that had persisted for three days. The rally could also be attributed to revelations that the European Union was planning to extend the Brexit deadline. Investors are hopeful that British leaders have done enough to stop Boris Johnson from forcing through a hard Brexit. John Bercow the House of Commons speaker warned Johnson that he should respect the Benn bill that was passed to stop a no-deal Brexit.
The cable’s rally could also be attributed to the greenback’s weakness as tracked by the US Dollar Index, which hit a low of 98.00. The release of the upbeat US retail sales data for August by the Census Bureau was not enough to bring the pair down as it held on to its gains.
The currency pair’s future performance is likely to be affected by Brexit headlines and the University of Michigan consumer sentiment index scheduled for 14:00 GMT.
The GBP/USD currency pair was trading at 1.2450 as at 13:36 GMT having risen from a low of 1.2328. The GBP/JPY currency pair was trading at 134.54 having rallied from a low of 133.34.

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