Pound Gains on New Plan Hope

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The Pound Sterling made some headway in Monday trade as the Prime Minister makes one final attempt to pushing through her Brexit deal. Theresa May had said that this new offer is one she considers, “new” and “bold,” and she hopes it will be an improvement such that she will finally get approval for the divorce from the European Union. This will be the Prime Minister's fourth such attempt, and there are still many who don't believe the Labour Party will find enough good in it to pass. Despite the Prime Minister's assurances, one media report believes it simply to be a rehash of the old plans with nothing likable about it.

As reported at 11:36 am (GMT) in London, the GBP/USD was trading higher at $1.2742, a gain of 0.1856%; the pair is moving off the earlier peak of $1.2757 while the low was recorded at $1.2719 in this session. The EUR/GBP was trading lower at 0.8756 Pence, down 0.187% and off the session trough of 0.87489 Pence while the high was set at 0.87742 Pence.

Political Uncertainty Still Weighs on GBP

Analysts say that the likelihood of a hard Brexit may be growing, given the failure of the current Prime Minister to obtain any sort of coalition behind her to push through her agenda. Her departure date, which was still not confirmed though likely to be sometime in June, is also weighing on the Pound. The latest poll has shown that the likely replacement for her job could be Boris Johnson who is the front-runner. Analysts say that if he becomes the Prime Minister that the chance of Britain crashing out of the EU without a deal in place becomes ever more likely.

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.