The Pound edged higher during Thursday trading as FX investors are pinning their collective hopes on the release of a “white paper” that perhaps could jump start trade negotiations between the British government and the EU leadership. The Prime Minister is expected to release this blueprint sometime today and the plan is said to include a free trade area. That plan is not without controversy, however, and it is believed that the recent resignations of key officials from the UK government left in protest of those proposals.
As reported at 11:23 am (BST) in London, the GBP/USD was trading at $1.3215, a gain of 0.07% and off the session peak of $1.3226; the pair's low for the trading day is recorded at $1.3190. The EUR/GBP is trading at 0.8835 Pence, down 0.05%; the pair's session peak is at 0.88500 Pence and the low is at 0.88320 Pence.
Pound Hopes Pinned on EU Negotiator
Analysts believe that Brussels may be willing to accept the proposal and a favorable response from Michel Barnier, the EU's chief negotiator, could lift the Pound further. On the other hand, says one currency stratgist, if the EU eschews the “white paper,” FX traders could expect to see the Pound fall below the $1.30 threshold on the risk that there will be no Brexit deal.