The GBP rose yesterday against the USD to touch a 2 month high of 1.2911 early this morning. The gains suggest that more MP’s are expected to support PM Theresa May, and that a ‘no deal’ Brexit has become less likely. Theresa May was seen desperately pleading with UK lawmakers to support her tomorrow, as rejecting her Brexit deal could lead to the of the UK. We can expect this volatility to continue during today’s trading session, as we await the crucial vote tomorrow morning.
Later in the evening, Bank of England Governor Mark Carney is scheduled to speak on the Financial Stability Report. As head of a central bank that controls short term interest rates, he has more influence over the nation’s currency value than any other person and his speech will be scrutinized to search for subtle clues on the direction of future monetary policy. The Office for National Statistics will also be releasing their data on the UK CPI, showing the change in the price of goods and service purchased by consumers. Considered to be the UK’s most important inflation data, it is expected to have a major impact on the Pound.
The GBP opened at 1.2863 against the USD this morning.