After the market's knee-jerk reaction to the British Supreme Court decision which found Boris Johnson had unlawfully prorogued the British Parliament, the Pound Sterling has given back most of its gains as uncertainty sets back in. Analysts say that the good that came out of the decision, namely the lowered likelihood of a hard Brexit next month, it has set the stage for a variety of options which are weighing on the currency. Those options include a second referendum, a new election or simply another postponement.
The GBP/USD fell from Tuesday's peak of $1.2504 and is now trading lower at $1.2431, a loss of 0.458% as of 11;17 am in London. The pair is ranging from a low of $1.24266 to a peak of $1.2492 in the session. The EUR/GBP is up at 0.8843 Pence, a rise of 0.2982%, and off the earlier high of 0.88554 Pence.
Outlook for Dollar Shaky
In the United States, the greenback has recovered after it came under pressure on the news that the US House of Representatives has officially begun impeachment investigations against the President. Analysts foresee downside risks to the US Dollar ahead of next year's election. The EUR/USD is currently lower at $1.0996, down 0.2051%.