Sterling Higher on Amendment Hope
With possible backing from the Labor Party for the latest amendment to the ongoing Brexit saga, the Pound Sterling inched higher and rose above the $1.30 level during London trade. While there is still no consensus on how to move forward before the deadline on March 29th, FX traders are breathing a little bit easier on knowledge that the opposition party is also hoping to avoid a disorderly exit from the EU. The belief is that, so long as Parliament can exert some control over the process, then that dire outcome can be avoided.
As reported at 11:39 am (GMT) in London, the GBP/USD was trading at $1.3022, up 0.52%, and edging just a few pips from the session high. The EUR/GBP was trading lower at 0.8723 Pence, a loss of 0.50%; the pair has ranged from 0.87204 Pence to 0.87822 Pence in today's session.
One UK Parliamentarian, Yvette Cooper who is an MP for the Labor Party, has presented an amendment to the Brexit bill which reaches across party lines. If approved at next week's vote, it would force Theresa May to request an extension of the departure date if there has been no resolution by the end of next month. While some hardliners who are firmly in favor of the Brexit would likely not support this, she is hoping just to give the process more time so that a favorable outcome can be had. The MP says her goal is simply to avoid a no-deal Brexit at the deadline date, which she believes is something that the Prime Minister should have already have backed.