February is proving to be another positive month for the UK economy as better-than-expected data brightens the pound & indicates a rebound after a fourth-quarter halt.
Following the release of strong economic data, the USD managed to stay little changed in early Asian trading today.
The pound has boosted above $1.30 today amid election speculation. The cable peaked to its highest since October 22nd, touching $1.2972 against the dollar.
The pound remained supported at 1.2936 as investors gambled on less risk of a hard-Brexit as the election campaign is already underway.
“Do or die”, the spooky words uttered by Prime Minister Boris Johnson. The same words that reveal his much-heralded Halloween deadline to be more trick than treat.
FX experts and strategists are certainly ruling nothing out ahead of tomorrow’s crucial parliamentary vote on Britain’s deal to withdraw from Europe.
Just as news broke that the pound had rallied today following confirmation that a long-awaited Brexit deal had been reached, the cable reversed its gains.
According to a report issued by the Institute for Fiscal Studies think-tank, if the UK should leave the EU without a transitional agreement in place, the budget deficit could rise to 4 per cent of gross domestic product.
The British pound fell by 0.5% today as investors prepared for further uncertainty after the UK’s Supreme Court ruled PM Johnson’s decision to suspend parliament as unlawful.
The bank’s Monetary Policy Committee (MPC) voted unanimously today to keep rates unchanged, warning that “entrenched uncertainty” around Brexit could drag on the UK economy.