Pound Clawing for Traction
The Pound Sterling is still struggling to hold ground above the recently struck 3-day trough as FX traders wait for any news on the latest developments in the Brexit. A broadly weakened greenback has also provided some limited support for the Pound. Currency strategists say that with the end of the year approaching, most traders are sitting on the sidelines waiting to see what news, if any, will drive their currency of choice. For Sterling bulls, it is keeping the Prime Minister under scrutiny to see if she is able to convince her own party to favorably push her proposal through Parliament. Analysts say this is Theresa May's do-or-die moment with the exit date only three months away.
As reported at 11:18 am (GMT) in London, the GBP/USD was trading at $1.2631, down 0.7%; the pair has ranged from $1.2616 to $1.2667 in today's trade. The EUR/GBP is trading at 0.9028 Pence, up 0.52%; the pair is moving off the session peak of 0.90326 Pence, while the low was recorded at 0.89750 Pence.
Some Still Hoping for Second Referendum
Since the beginning of the year, The Pound has lost over 6% of its value relative to the US Dollar, largely on concerns of a hard Brexit in March 2019. In the short term, market focus will be on whether or not the Prime Minister gets the necessary backing for her plans in Parliament. If she fails to secure support, however, analysts say that there is growing hope that it could force a second referendum with the possibility that the plans to leave the EU reconsidered.