The Brtish pound today fell against the US dollar despite putting up a strong fight as the Labour Party leader Jeremy Corbyn ramped up calls for a general election to unseat the Conservative Party. The GBP/USD currency pair fell at the start of today’s session, then recouped all its losses as it carried over last week’s strength, but fell to new lows in the London session.
The GBP/USD currency pair today rallied to a high of 1.2172 in the late Asian session before falling to a low of 1.2105 and then rallying higher to recoup most of its losses.
The currency pair rallied higher in the Asian session as bullish traders bid up the cable despite the impact of the leaked Yellowhammer report over the weekend. Traders ignored the fact that Boris Johnson‘s government was preparing for massive disruptions to the transport sector as well as shortages of fresh foods, fuel and medicines. The report was termed as a scare tactic by Michael Gove, the minister in charge of planning for a no-deal Brexit with Kwasi Kwarteng, an energy minister echoing the same sentiments.
The pair bounced back in the American session as bullish traders defended the critical 1.2100 level and sent the pair back up to its daily highs. The currency pair appears ready to keep rallying higher after bottoming out last week.
The currency pair’s future performance seems likely to be affected by Brexit headlines and geopolitical events given tomorrow’s empty UK and US dockets.
The GBP/USD currency pair was trading at 1.2134 as at 16:37 GMT having dropped from a high of 1.2172. The GBP/JPY currency pair was trading at 129.27 having fallen from a high of 129.53.
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