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British Pound Briefly Hits 2 Month High

sterling, pound, britishThe British pound surged higher overnight before losing some gains. The GBP/USD Forex market hit a 2 month high after news headlines surfaced that a pro-Brexit group of parliament members might support Prime Minister Theresa May’s Brexit deal in parliament. This later was recanted and the British pound fell lower.

The denial came from European Research Group (ERG) member Steve Baker. This brought the British pound down from a two month high at $1.2930. The Sterling was still up 0.3 percent up for the day at $1.2876 by 12:00 p.m.

The GBP/EUR market was up for a time to trade at 0.8875. This was up 0.6 percent and at its highest since December 5. This market fell back to 0.8920.

Traders Initially Support the British Currency on Positive Brexit News

In the news, the Pound moved higher as headiness surfaced that a warning from Prime Minister May that if lawmakers did not vote on her Brexit deal today, the parliament vote could cause to the United Kingdom to remain in the European Union.

The prime minister urged parliament members to give the deal another look. She, more than most likely, does not have the votes she needs.

While May urged parliament to give her deal “a second look”, the proposal looks almost certain to get the thumbs down. A pro-Brexit Conservative faction, the European Research Group, denied a headline that they would support May’s Brexit deal. This sent the Pound back lower.

About David Frank

David has his MA and PhD in Economics. He is a technical analyst who has been trading in the Forex world for over a decade. As an analyst and trader, David believes in the big picture by blending together technical analysis with the fundamentals behind the scenes in the Forex and Bond markets. David’s trading strategy is unique. He blends an understanding of fundamental and macroeconomics with technical analysis to offer a unique view into Forex. He applies several strategies including carry long positions, to take advantage of high yields in non-volatile markets, as well as using quicker, chart related analysis for day trading.

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