Pound finds support over reference number of 1
.20 against US dollar after more Brexit chaos
Pound to US dollar exchange rate has risen higher to over 1,150 for the GBP / USD pair when Brexit tensions reach the boiling point of the House of Commons. With 57 days to go until the deadline of October 31, 2019, the stakes are high after Britain's Prime Minister Boris Johnson lost his first parliamentary vote yesterday with 328 to 301 votes. 21 Conservative rebels voted against the government despite the whip being removed and will face re-election in any future parliamentary elections. That has prompted Boris Johnson to call for an election, although opposition leader Jeremy Corbyn has said the Labor Party would only support an election when no deal had been taken off the table.
Key Brexit vote in parliament today: What can happen?
It leaves an uncertain period ahead, while no agreement is attempted taken off the table by the so-called rebel alliance. Today faces another day of uncertainty and instability when Parliament votes on a bill that will effectively extend Brexit to the end of January 2020, something the Prime Minister has promised he will not tolerate. Prices for GBP / USD continue to revolve around whether there will be an agreement between the UK and the EU. There are so many potential different outcomes from these latest twists and turns that make it almost impossible to predict. As such high volatility can be expected for exchange rates for pounds to US dollars when a way forward is established and the market movement can be in both directions.
US non-farm payrolls released Friday
while Brexit is expected to dominate headlines today and tomorrow the US will see the release of non-farm payrolls on Friday and may create some movement for GBP / USD interest. Yesterday the dollar came under pressure after disappointing production data with the US trade war cited to have a negative impact. Friday's payroll figures are expected to be tense, as the outcome is likely to lead to the US central bank meeting later this month, and where a cut in interest rates is expected.
Those with pending demands to either buy or sell dollars would want to consider their option during such an eventful week in UK politics as well as with important computer releases for the United States.
Those with pending demands to either buy or sell dollars would want to consider their alternative in such an eventful week in UK politics as well as with important data releases for the United States.