Pound Higher on Brexit Noise

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The Pound Sterling was steady during trade on Wednesday but remained close to the recently struck 2-week trough as FX traders consider the latest Brexit related news. According to the report from the Telegraph newspaper, Parliamentarians are considering the possibility of pushing back the Brexit deadline by an additional eight week. The hope is that that would reduce the likelihood that the Brexit would occur without a deal in place. The Prime Minister is poised to visit EU officials in Brussels tomorrow to discuss the Irish border plans after the Brexit.

As reported at 11:26 am (GMT) in London, the GBP/USD was trading higher at $1.2958, a gain of 0.04% and off the session peak of $1.2974 while the low was recorded at $1.2926. The EUR/GBP was down -.16% and 0.8788 Pence; the pair has ranged from a trough of 0.87789 Pence to a high of 0.88115 Pence.

BoE Outlook Uncertain

With little fundamental economic news in the works, markets will focus on the potential outcome of tomorrow's Bank of England policy meeting. Currently, analysts are predicting that the MPC will hold interest rates at current levels of 0.75%, with asset purchases similarly maintained. What will be important among tomorrow's releases are the BoE's Inflation Report and the minutes of its last meeting. Analysts say that any shift if the inflation outlook, coupled with uncertainty over the Brexit, are likely to delay the next rate hike.

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.