The Sterling pound today fell against the US dollar as investors closed most of their profitable trades ahead of a crucial vote on the Brexit deal later today. The GBP/USD currency pair fell to its daily lows in the early American session before bouncing back as the vote drew closer.
The GBP/USD currency pair today fell from an initial high of 1.2987 to a low of 1.2892 in the early American session before recouping almost all its losses by the time of writing.
The currency pair traded sideways during the Asian session before falling to its daily lows in the early London session. The pair’s decline was triggered by Boris Johnson‘s announcement that he would call for early elections if the government lost today’s vote. Investors seem confident that the EU would grant a long Brexit extension that would allow for a snap general election to happen by December. The release of the upbeat UK public sector net borrowing data by the Office for National Statistics also boosted the pair; public sector borrowing came in at 8.73 billion versus the expected 8.80 billion print.
The pair rallied higher in the early American session as the US Dollar Index fell to a low of 97.32 and was within a few pips of its daily lows. The currency pair was rallying at the time of writing as the vote in the House of Commons got underway.
The currency pair’s future performance is likely to be influenced by the outcome of today’s vote as well as US dollar dynamics.
The GBP/USD currency pair was trading at 1.2976 as at 18:02 GMT having rallied from a low of 1.2987. The GBP/JPY currency pair was trading at 140.85 having risen from a low of 139.97.
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