The British Pound remained under sell pressure as new worries about the possibility of an unruly Brexit came to the fore. The GBP/USD pair had hit a 3-week trough early in today's trading session as uncertainty grows ahead of the January 31st deadline. The British Prime Minister is legally bound to pull the United Kingdom out of the Eurozone trading bloc by the end of 2020, and no additional talks can be held after that time. Investors are concerned that a trade deal that is favorable to Britain will not be realized in time
The GBP/USD pair was trading higher as of 11:00 am in London, with the pair at $1.294, a gain of 0.0294% and moving off the earlier trough of $1.29212. The EUR/GBP is lower at 0.8557 Pence, a loss of 0.1284%; the pair has ranged from 0.85546 Pence to 0.85803 Pence in today's trading session.
Outlook for Aussie and Kiwi Dollars Improves
In Asia, the Aussie Dollar firmed during trade and hit a 4-month high on an optimistic outlook for the US-Sino trade talks. Though currently lower at $0.6920, the AUD/USD pair is still within striking distance of $0.6939, a level last seen in late July, with the Aussie gaining more than 1% in just the last four trading sessions. The Kiwi Dollar has also found some support from investor optimism, though the NZD/USD is currently trading at $0.6632, down 0.0286% and falling from the session high of $0.66420.