Once again, it is the Brexit news and its impact on the Pound Sterling which is dominating FX markets. As a series of votes beings later today in Parliament which will help map out the way forward, the Pound remained below the recently struck 9-month peak. There is little doubt that a conclusion will be drawn anytime soon given the gamut of options the Parliamentarians must consider, which include, at the extremes, accepting the Prime Minister's original plan to stopping the Brexit from occurring.
As reported at 11:39 am (GMT) in London, the GBP/USD was trading at $1.3203, down 0.0144%; the pair has ranged from a trough of $1.3167 to a peak of $1.3215 in this trading session. The EUR/GBP was trading at 0.8544 Pence, a gain of 0.1277%; the pair is off the session peak of 0.85507 Pence while the low was recorded at 0.85262 Pence for the day's trade.
Market Remains Unconvinced
The problem, says one analyst, is that there is no clear consensus for any one option, which is likely to further cloud the discussions. Despite that, FX strategists have come to the conclusion that there does appear to be some optimism creeping into sentiment, as evidenced by the recent firming of the GBP/USD pair. FX traders do remain wary, they caution, with implied volatility for the pair in the short term significantly higher than longer term readings.