The British Pound floated higher and remained just off a 6-week peak as concerns over a hard Brexit seem to be receding, despite Boris Johnson’s efforts to pull Britain out of the EU, with or without a deal. The Prime Minister continues to insist that he will not request a postponement, though Parliamentarians had enacted a law requiring exactly that of him. The Pound is also being provided with support with economic data that had been largely better than analysts had predicted. The latest figures had shown improvement in not just the UK labor market, but industrial and manufacturing productivity.
The price of the GBP/USD pair at 9:58 am London time was $1.2359, up 0.0453%, not far from the session peak of $1.2370. The EUR/GBP was 0.1846% lower at 0.8923 Pence; the pair has ranged from a low of 0.89185 Pence to 0.89520 Pence.
Prime Minister’s Actions in Question
Analysts are still waiting for the snap election to be called, but in the absence of that, they are anticipating a relative period of calm for the Pound, at least through the October 31st deadline. Volatility in the GBP/USD pair is likely to see some increase thereafter, through the end of the year. The Prime Minister’s behind-the-scenes actions will likely continue to put stress on the pair as well, as he considers his options given the legal limitations imposed by Parliament and which were given the Royal Assent by Queen Elizabeth.