Pound Holds Steady amid Brexit Uncertainty By Investing.com


© Reuters.

Investing.com – The British pound was holding steady on Wednesday, recovering some poise in the wake of a fall overnight after parliament forced a delay in the U.K. government’s Brexit plans.

slipped as low as 1.2841 overnight before pulling back to 1.2878 by 04:17 AM ET (08:17 GMT). That left the pound more than one cent off Monday’s five-and-a-half-month high.

Against the , the pound was a touch lower at 0.8645 following a 0.5% decline in the previous session.

On Tuesday, parliament opposed British Prime Minister Boris Johnson’s three day timetable for passing Brexit legislation. The stage now looks set to push for a general election before Christmas to break the impasse.

It is up to the EU to decide whether to extend Britain’s Oct. 31 deadline for its departure.

Adam Cole, a strategist at RBC Capital Markets, said Brexit was driving a “general risk-off tone”.

“Things could change very quickly today, depending on the EU response,” he said. He added that he did not see “much downside” risk now that a no-deal Brexit was off the table.

Morten Lund, a senior strategist at Nordea, said that markets were reacting to the likelihood of a U.K. election.

The dollar hit a low of 108.25 against the safe haven Japanese overnight, the weakest since Oct. 15 and was last at 108.38.

Away from Brexit, investors are also closely watching for signs of a thaw in the U.S.-China trade war, which has proven to be a big risk to financial markets and global economic growth.

The was little changed at 1.1122 before Thursday’s European Central Bank meeting, outgoing President Mario Draghi’s final policy meeting.

The was flat at 97.25, holding on to a 0.2% gain posted on Tuesday.

–Reuters contributed to this report

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Leave a Reply

Your email address will not be published. Required fields are marked *