The Pound edged higher during London trade on Wednesday on news that the Prime Minister was focusing her efforts on the Democratic Unionist Party (DUP) of Northern Island in an attempt to sway crucial votes. According to the media reports, Theresa May is set to release a number of commitments intended to specifically benefit the Northern Ireland residents along the border. The DUP, however, put little credence in the Prime Minister's promises to improve trade along the border, calling them meaningless.
As reported at 11:35 am (GMT) in London, the GBP/USD was trading higher at $1.2727, a gain of 0.11% and off the session peak of $1.2777; the low for the trading day was recorded at $1.2713. The EUR/GBP was flat at 0.8995 Pence; the pair has ranged from 0.89755 Pence to 0.90058 Pence.
Sterling Outlook Bright on Vote Approval
With a vote in Parliament scheduled for next week, the Prime Minister's ability to pull out a win is still in jeopardy. However, if she is able to eke out a favorable outcome, analysts say that the Pound is very likely to see the Pound pushed, at minimum, four percent higher against the greenback, and possibly even five percent. Moreover, analysts have concluded that, with a hard Brexit off the table, the Bank of England is likely to be more willing to move toward a higher rate environment with a rise of 50 basis points possible.