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Pound Falls Then Recovers as Brexit Deal Debate Is Paused

October 23, 2019 at 19:28 by Simon Mugo

Banknotes of ten British poundsThe Sterling pound today fell against the US dollar during the Asian session as investors digested the mixed results of yesterday’s crucial Brexit vote. The GBP/USD currency pair later rallied to trade at break-even in the London and New York sessions as investors waited for the EU’s response to the UK’s extension request.

The GBP/USD currency pair today fell to a low of 1.2844 in the late Asian session before rallying to a high of 1.2920 in the late American session and was near these highs at the time of writing.

The currency pair fell at the start of today’s session as markets reacted to the House of Commons rejection of Boris Johnson‘s timetable to discuss the latest Brexit deal, which they had just approved. UK opposition leaders including Labour Party leader Jeremy Corbyn stated that British MPs had refused to be manipulated by Johnson to pass such a crucial bill quickly. The prospect of an early general election now seems very real as Donald Tusk urged EU27 leaders to approve the 3-month Brexit extension request.

The lack of any major fundamental releases from both the UK and the US meant that the cable’s performance was significantly influenced by the US Dollar Index‘s performance. The possibility of the US-China trade talks not resulting in a deal also dampened investor risk appetite.

The currency pair’s future performance is likely to be affected by Brexit developments and tomorrow’s multiple US releases.

The GBP/USD currency pair was trading at 1.2918 as at 19:27 GMT having rallied from a low of 1.2844. The GBP/JPY currency pair was trading at 140.37 having risen from a low of 139.10.

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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