The British pound today rallied higher against the US dollar driven by investors hope that a last-minute Brexit deal could be reached before tomorrow’s crucial vote. The British Prime Minister was en-route to Strasbourg at the time of writing in a last-minute effort to secure a new deal and resolve the thorny Irish backstop issue by tomorrow.
The GBP/USD currency pair today rallied from a low of 1.2960 in the Asian session to a high of 1.3170 the American session before a slight retracement.
The currency pair opened this week’s trading with a gap lower as the Asian session got underway amid negative investor sentiment. The pair went on a sustained rally in the mid-European session as news headlines indicated that PM May and the European Commission were talking, which raised the possibility of a new deal. The rally kept going as news emerged that PM May and Jean-Claude Juncker had spoken on phone earlier today. The Irish Finance Minister confirmed news reports that the UK PM would travel to Strasbourg where the European Parliament is based later today to push for a better deal.
The pair kept its rally intact after the release of mixed US retail sales data by the Census Bureau in the early American session. The core print beat expectations, while the previous print was revised lower.
The currency pair’s short-term performance is likely to be driven by Brexit headlines as well as tomorrow’s UK and US macro releases.
The GBP/USD currency pair was trading at 1.3159 as at 18:49 GMT having rallied from a low of 1.2960. The GBP/JPY currency pair was trading at 146.36 having risen from a low of 143.72.
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British Pound Rallies on Market Hopes for Last Minute Brexit Deal
