The Pound Sterling edged higher during trade in London on Wednesday as investors' pin their collective hopes on the Prime Minister who appears to have crafted a proposal that the European Union can get behind. On Sunday, the EU leadership are set to meet to approve the deal which will outline the the post-Brexit arrangements for the two sides. Some analysts are concerned over Spain's objections to certain parts of the plan, but Angela Merkel, Germany's Chancellor, said she expected a solution would be forthcoming by Sunday.
As reported at 11:38 am (GMT) in London, the GBP/USD was trading higher at $1.2799, a gain of 0.10%; the pair earlier hit a peak of $1.2820 while the low was recorded at $1.2772. The EUR/GBP is trading at 0.8915 Pence, up 0.33% and off the session peak of 0.89160 Pence.
Brexit Hopes Misplaced?
While the EU's acceptance of Ms. May's proposal is welcome news, it doesn't change the possible outcome for Parliamentary approval. Many in Theresa May's own political circle don't believe the proposal to be favorable to Britain and, as a result, have fought resolutely to prevent its approval. Analysts say she does not have enough votes to push through her proposal at the present time. On the bright side, neither, however, does she have enough formal votes to stage a no-confidence vote as that efforts appears to have lost momentum.