With the US Dollar under pressure after President Trump made disparaging comments about the Federal Reserve, the Pound Sterling was able to eke out some gains and eventually approach a 2-week high. The GBP/USD pair pulled away from the recently struck 14-month trough as a result. However, analysts point out that those gains for Sterling are likely to be short-lived as Brexit worries continue to be on the collective minds of FX traders.
As reported at 11:19 am (BST) in London, the GBP/USD was trading at $1.2829, a gain of 0.26% and off the session peak of $1.2846 while the low is at $1.2794. The EUR/GBP is trading at 0.8996 Pence, up. 0.19%; the pair has ranged from a trough of 0.89716 Pence to a peak of 0.90024 Pence in this trading session.
Brexit Outlook Murky
The UK government has a self-imposed deadline approaching in about eight weeks; if a withdrawal deal has not been finalized at that time, currency strategists say that downside risks for Sterling will persist. What is worrying to some members of the UK Parliament is that negotiators may not put the needs of its citizens first and foremost but rather attempt to preserve the party's “ideological purity” instead.