The Pound was higher versus both the US Dollar and the common currency Euro although FX traders appear caution and intent on focusing on the looming Parliamentary debate. At stake is whether the amendments that the Prime Minister is trying to push through will be approved; a yes vote will be confirmation that the UK Parliament is in support of her plans for the Brexit. A no vote, on the other hand, will be clear evidence of Parliament's dissatisfaction with her efforts and could mean that an early election might be forthcoming which would further endanger the likelihood of a “soft” Brexit.
As reported at 11:21 am (BST) in London, the GBP/USD was trading at $1.32645, up 0.24%; the pair has ranged from a trough of $1.3225 to a peak of $1.3274 in today's session. The EUR/GBP is trading 0,88263 Pence, a loss of 0.03%; the pair earlier hit a session low of 0.88200 Pence while the peak is at 0.88400 Pence.
Uncertainty Still Driving Pound Sentiment
Markets do have high expectations that the Bank of England is planning to raise its benchmark lending rates next month but the recent fall for the Pound has cast some doubts. The Pound continues to come under pressure from many sides, but most prominently from Brexit-related threats. Since April, Sterling has slid nearly 9% and was, in fact, down 1% last week as Britons responded to the visit from the US President and the looming concern of strained trade relations with the US.