Yesterday was a wild ride for the GBP USD exchange rate as it contracted and declined during the sessions. News from the United Kingdom’s Parliament and the British Prime Minister’s Brexit proposal delay caused the sterling to rise and fall in sessions.
The first half of the session was rough for the GBP USD pair as it dipped as low as $1.2875 in early Monday trading.
However, the renewed hopes for British Prime Minister Boris Johnson and his proposal supported the pound in sessions.
Optimism regarding Johnson’s persistence would soon see his Brexit text through the UK Parliament.
The GBP USD exchange rate rallied 0.17% or 0.0023 points in yesterday’s sessions. The pair even peaked above the $1.3 mark, hitting levels between $1.3101 and $1.2875 on Monday.
The pair’s fluctuation comes after the complicated news for Brexit hopefuls over the weekend. On Saturday, the British Prime Minister’s deal was delayed by a cross-party group of lawmakers.
The British officials have voted to postpone the BPM’s much-awaited “meaningful vote” to force him to switch gears. The move pushed Boris Johnson to seek an extension in Brussels to the current Brexit due date.
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On Saturday night, the British Prime Minister grudgingly approached the EU leaders for an extension of the deadline. Unfortunately for Johnson, the European Union leaders don’t necessarily have to take his plea.
Pound traders haven’t lost all hopes as the GBP USD exchange rate continues to stand its ground and hold on to its gains.
However, with uncertainties floating around the pound, more and more analysts and households are starting to expect a rate cut for the Bank of England.
Brexit woes raise expectations for the bank to cut rates despite rising wages and low employment rates. The uncertainty around the UK and EU’s divorce is a big factor for the gloomy mood around the currency.