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Pound Rallies on Hopes of Avoiding No-Deal Brexit

January 25, 2019 at 22:26 by Vladimir Vyun

Banknotes of ten British poundsThe Great Britain pound rose against its most-traded rivals today on hopes that the country will be able to avoid hard Brexit that can cause serious damage to Britain’s economy.

The Sun newspaper reported that Northern Ireland’s Democratic Unionist Party had privately decided to back the Brexit deal proposed by UK Prime Minister Theresa May. In return, the DUP demands that the controversial Irish backstop should have a clear time limit. The news added to evidences that politicians take efforts to avoid a no-deal Brexit. The House of Commons will vote next Tuesday on an alternative deal after the deal that May negotiated with the European Union was rejected.

As for macroeconomic data, the retail sales reported by Confederation of British Industry showed a balance of 0% in January, meaning that sales were neither rising, nor falling. In December, the balance was at -13%. Analysts had expected that the balance in January would be +3%.

GBP/USD jumped from 1.3062 to 1.3186 today, and its daily high of 1.3218 was the highest since October 16. GBP/JPY advanced from 143.19 to 144.40. EUR/GBP edged down from 0.8652 to 0.8637.

If you have any questions, comments, or opinions regarding the Great Britain Pound, feel free to post them using the commentary form below.

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