Brexit Hopes Rise for FX Traders

The Pound Sterling is moving off earlier higher movements against the US Dollar which occurred after Philip Hammond, the UK Finance Minister, spoke of constructive discussions with European Union officials. That helped to improve sentiment and gave rise to newfound hopes that a Brexit proposal could be on the table for which UK Parliamentarians might now favorably vote. The revised deal could be presented to Parliament as soon as next week with a vote coming in short order.

As reported at 11:31 am (GMT) in London, the GBP/USD was trading at $1.3038, down 0.0766%; the pair has ranged from a low of $1.3026 to a peak of $1.3088 in this trading session. The EUR/GBP was trading at 0.8699 Pence, a gain of 0.0909%; earlier the pair had hit a session peak of 0.87040 Pence while the low was recorded at 0.86663 Pence.

Party Resignations Viewed Positively

The recent resignations of members of both political parties, who had decided to go “independent,” is also helping to buoy the currency as they are seen as individuals for whom country is more important than party and who are more likely to push through Theresa May's Brexit proposals. At the same time, the resignations may prompt the Prime Minister to be slightly more flexible in hammering out a deal, knowing that there could now be some support outside of the parties which have often held to narrow guidelines.

Barbara Zigah is a freelance journalist living in Ghana, who specializes in Forex-related content; her online work has appeared in the IB Times, NASDAQ, Benzinga, and Seeking Alpha.