In early trade in Asia, the Pound Sterling rallied and struck a 2-month peak versus the US Dollar after it was reported that the Prime Minister's Brexit deal has obtained the backing of the Democratic Unionist Party (DUP) of Northern Ireland. While the Pound has been feeling the pressure of Brexit uncertainty, especially given the concerns over global economic growth, the latest news helped to push Sterling higher. Some currency strategists are hoping that the momentum could eventually push the GBP/USD pair toward $1.38 technical breakout level, a price which was last seen in 2016.
As reported at 9:37 am (JST) in Tokyo, the GBP/USD was trading at $1.3104, up 0.25% and off the session peak of $1.3128. The EUR/GBP is trading lower at 0.8631 Pence, down 0.18% and remaining well off the session trough of 0.86177 Pence. The GBP/JPY was trading at 143.708 Yen, up 0.36%; the pair has ranged from a low of 143.101 Yen to a high of 143.956 Yen.
Draghi Sounds Off on Growth Outlook
In the Eurozone, the Euro came under some pressure today after the head of the European Central Bank added his voice to the list of those who have been expressing concern about the negative affects of the global economic downturn. Mario Draghi said today after the ECB's policy announcement that he expected Euro-area growth to continue to weaken more than had originally been expected. The EUR/USD was trading at $1.1307, up 0.03%; the pair has ranged from $1.13010 to $1.13156 in today's session.