The Pound Sterling was under pressure during London trade today after posting the largest single week's gain in more than a year last year. Currency strategists attribute the rise to FX traders consolidating positions ahead of this week's critical Brexit vote in Parliament. Uncertainty as to the outcome has had a negative impact on sentiment, with many wondering how Theresa May and her Conservative Party will find the way forward. The vote, which is set for tomorrow, is certain to bring even more volatility to Pound trading say analysts.
As reported at 10:48 am (GMT) in London, the GBP/USD was trading at $1.3175, down 0.18% and off the session trough of $1.3152 while the high was recorded at $1.3212. The EUR/GBP is trading at 0.8667 Pence, a gain of 0.31%; the pair has ranged from a high of 0.86726 Pence to a trough of 0.86360 Pence.
Euro Higher on Hope for Trade Talks
In the Eurozone, the common currency is gaining traction as FX traders await this week's trade talks between the United States and China. The EUR/USD was trading at $1.413, up 0.07% and moving off the session low of $1.13900. It is hoped that the 2-day talks will result in some sort of compromise acceptable to both sides. As a result of the trade tensions, safe haven demand has risen, which pushed the Dollar, as a safe haven currency, higher. News that the federal government will finally reopen, albeit temporarily per Mr. Trump, dented demand for the greenback. In the short term, dollar direction will be largely a result of the outcome of this week's meeting of the Federal Open Market Committee. Most analysts foresee the Fed pausing their tightening schedule, given the overall concerns about global growth.