Brexit Rumors No Help to Sterling
Though currently lower, the Pound continues to trade close to a 1-week peak versus the US Dollar. Currency strategists say that the Brexit debate and Parliamentary vote which will take place next week will dominate Sterling trade until then. Analysts still feel that Theresa May will fall short of the vote needed to push her Brexit plans through to fruition. There has been some unsubstantiated reports that officials from both sides are working to extend the formal process so that the impact of the breakup will be better tolerated; the Brexit Secretary has denied this, however.
As at 11;00 am (GMT) in London, the GBP/USD was trading at $1.2759, down 0.21% and off the session trough of $1.2747. The EUR/GBP is trading at 0.8971 Pence, a loss of 0.03%; the pair has ranged from 0.89486 Pence to 0.89826 Pence in today's session.
Markets Eye Trump Address
The US Dollar has been able to gain some traction after coming under pressure with the shutdown of the Federal Government, now in its 18th day, and a seeming pause in its hawkish outlook from the Federal Reserve. Markets are also waiting to hear what President Trump has to say in his televised address which will take place later today. The uncertainty over the end of the shutdown had resulted in a generally weaker US Dollar. The EUR/USD was trading lower at $1.1444, down 0.27%.