Pound's Fate Hangs on Parliament Vote
The latest polls on the Pound Sterling suggests that the fate of the currency is almost completely in the hands of the Prime Minister. According to the Reuters poll, sentiment revolves around Theresa May's ability to push her plans for the Brexit through the British Parliament. To a lesser extent, weak economic growth is also likely to weigh on sentiment, according to the 77 pollsters. The Prime Minister's fate relative to the Brexit will be called into question on December 11th when the Parliament votes on her withdrawal plan. The poll shows that approval of the plan could send the Pound higher by 3.5% while a defeat will likely result in a loss of about 2.75%.
As reported at 11:27 am (GMT) in London, the GBP/USD was trading at $1.2741, up 0.06%; the pair has ranged in a tight band from a low of $1.2700 to a high of $1.2753 in today's session. The EUR/GBP was trading at 0.89 Pence, down 0.9%; earlier, the pair had hit a low of 0.88923 Pence while the peak was recorded at 0.89278 Pence.
Japanese Yen Lifted as Trade War Fears Grow
The Japanese Yen, as a safe haven currency, is benefiting from renewed trade war fears. This was prompted by the news that the CFO of Chinese-based Huawei electronics was arrested in Canada at the behest of the United States. The shock waves over the implications of that arrest rippled global equity and FX markets. The USD/JPY was trading at 112.7570 Yen, down 0.3244%; the pair earlier hit a trough of 112.583 Yen. The EUR/JPY was trading at 127.8700 Yen, down 0.39%; the pair has ranged from 127.6740 Yen to 128.4300 Yen.