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Pound Rallies as Opposition Leaders Unite to Prevent Hard Brexit

August 27, 2019 at 16:59 by Simon Mugo

Many 20-pound notesThe Sterling pound today rallied to new monthly highs after British opposition leaders agreed to support legislation aimed at preventing a no-deal Brexit. The Conservative Party criticised the move by the opposition MPs saying that the six leaders who signed the Church House declaration were planning to cancel the votes of 17.4 million people.

The GBP/USD currency pair today rallied from a daily low of 1.2209 in the Asian session to a new monthly high of 1.2308 and was trading near these highs at the time of writing.

The currency pair rallied higher earlier today as US Treasury yields fell deepening the yield curve inversion and weakening the greenback as tracked by the US Dollar Index. The pair extended its positive momentum in the afternoon as British opposition leaders met to discuss potential alternatives to a no-deal Brexit. Labour Party leader Jeremy Corbyn agreed to delay a no-confidence vote against Boris Johnson in order to support the cross-party move to block a no-deal Brexit. Today’s declaration was spearheaded by Labour’s John McDonnell who vowed to protest any attempts to suspend Parliament in order to push through a hard Brexit.

The cable fell slightly following the release of the upbeat US consumer confidence index for August by the Conference Board, which beat expectations but quickly recovered. The consumer confidence print came in at 135.1 as compared to the consensus estimate of 129.0.

The currency pair’s future performance is likely to be affected by Brexit headlines and trade headlines amid the absence of major economic releases.

The GBP/USD currency pair was trading at 1.2298 as at 16:58 GMT having rallied from a low of 1.209. The GBP/JPY currency pair was trading at 130.03 having risen from a low of 129.02.

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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