Uncertainty related to the Brexit continues to weigh on the Pound Sterling with the Prime Minister once again placed in a difficult position. A worst-case scenario appears to be building for the Pound now that UK policymakers have failed to coalesce around an alternative Brexit plan. Analysts say that though FX traders still appear hopeful of a soft Brexit, continued lack of resolution could push the GBP/USD pair significantly lower, with some currency strategists saying that the $1.20 or even $1.10 level would not be too far a stretch. Michel Barnier, the chief negotiator for the European Union, has said that he would not agree to anything other than a majority-favored option.
As reported at 11:40 am (GMT) in London, the GBP/USD was trading higher at $1.3062, edging off the session trough of $1.3024, while the high was recorded at $1.3086. The EUR/GBP was trading at 0.8577 Pence, down 0.0035%; the pair has ranged from a low of 0.85655 Pence to a peak of 0.85942 Pence in today's session.
RBA Holds Rates, Looks to Future
Earlier today, the Reserve Bank of Australia maintained interest rates at the current level of 1.5%. Investors were anxious to see if the central bank would move to a more dovish posturing, following the Reserve Bank of New Zealand. The RBA did say that it would set policy in order to see continued sustainable growth. To analysts, that suggests a more dovish bias, with markets now beginning to price in at least one rate cut this year. The AUD/USD was trading lower at $0.70.77, down 0.3871%.