The Pound Sterling drifted higher during trade on Wednesday as higher risk assets recovered from earlier losses on the market's belief that the rocket attacks on American troops based in Iraq would not result in a wider regional conflict. Earlier today, Iran fired more than a dozen missiles at American targets in Iraq in response to the U.S. drone strike of last week which killed Qassem Soleimani. The news of the military commander's death stoked new fears of another Middle East conflict.
As of 11:12 am in London, the GBP/USD was trading higher at $1.3122, a gain of 0.585%; the pair had earlier hit a 2-week peak of $1.3284. the EUR/GBP was lower at 0.848 Pence, a loss of 0.1895%; the pair has ranged from a low of 0.84540 Pence to a high of 0.85179 Pence. The GBP/JPY was at 142.49 Yen, up 0.2018%.
Brexit Bill Set to Pass
In the UK, passage of Boris Johnson's Brexit bill looks to pass before the January 31st deadline. There will be a 3-day debate in the Parliament's lower house before it moves to the upper chamber but analysts believe at this point that the discussions will not likely impact the outcome. As a result,that has helped to push the Pound Sterling higher, and positioning data shows net long positions in Sterling have reached a 1½ year high.