The Pound Sterling steadied versus the US Dollar after a relatively volatile day. Sentiment for the Pound had been driven by differing signals including the Brexit plan, and the Bank of England’s outlook on interest rates and growth. On Tuesday, one member of the Monetary Policy Committee of the BoE said that rates should rise provided inflation accelerates and growth remains solid. Later this morning markets could get additional insight into the BoE’s thinking with the release of regional reports.
As reported at 10:24 am (GMT) in London, the GBP/USD was trading at $1.2490, down 0.14%; the pair has ranged from a low of $1.2477 to a peak of $1.2519 in today’s trading. The EUR/GBP was trading at 0.8529 Pence, down 0.12%; the pair’s daily range is from a low of 0.8510 Pence to a peak of 0.8553 Pence.
Brexit Proceedings in Parliament
Also ahead today is the UK Parliament’s final vote (in the lower chambers) on the Brexit proceedings; after this, the vote will pass for approval to the upper chamber. If Parliament rejects the deal that the UK Prime Minister has made there will be no further talks; that is according to one spokesperson for the UK government. Putting additional pressure on the Pound is news that momentum is gaining for a vote on Scotland’s withdrawal from the United Kingdom; it should be noted that Scotland did not vote in favor of the Brexit.