Until the Brexit is a “done deal in March 2019,” FX traders will have little choice but to ride a wave of uncertainty. Such is the case for trade in London today, with the Pound Sterling under pressure as worries mount that a soft Brexit might not be on the table. The UK Prime Minister's own party is in disagreement over her proposals as they relate to trade across the Irish borders. The latest news is that that four British ministers from Theresa May's party, all of whom had supported staying in the Eu, are considering resigning.
As reported at 11:08 am (GMT) in London, the GBP/USD was trading lower at $1.2849, down 0.93% and near to the session trough of $1.2827. The EUR/GBP is trading higher at 0.8757 Pence, a gain of 0.21%; the pair has ranged from 0.87370 Pence to 0.87738 Pence.
Dollar Benefiting from Fed
In the US, the Dollar continues to strengthen as FX traders position themselves for a very probable December interest rate hike from the Federal Reserve Bank. Last week, the Fed reaffirmed its outlook of a tighter monetary policy, and the concerns over a possible failed Brexit strategy are helping to prop up the Dollar as a safe haven currency. Though FX traders perceive the Japanese Yen as a “safer bet,” the monetary policy divergence between the Fed and the Bank of Japan has provided a benefit to Dollar bulls. The USD/JPY is currently trading at 113.923 Yen, up 0.090%; the pair has ranged from 113.750 Yen to 114.214 Yen in today's session.