Pound Rallied Against the U.S. Dollar

Sterling Pound Rallied Against The U.S. Dollar even after the UK said it was actively arranging a no-deal Brexit situation as the October 15 deadline nears.

The GBP/USD currency pair yesterday dropped to a low of 1.2846 in the early American session. This was before rallying near its daily highs of 1.2929 published earlier in the London market.

The currency pair rallied higher earlier yesterday. Thus, reversing Tuesday’s large drop before Ireland’s Foreign Minister Simon Coveney stated that the EU’s top negotiator Michel Barnier would not consent to expedited talks in the UK shifts its stand on state support.

Nevertheless, the UK’s lead Brexit negotiator David Frost said to reporters that the UK was ready to trade on Australia terms if a deal could not be met. The announcement of the disappointing UK house price index report by the Office for National Statistics also fitted the pair’s original decline. Cabinet Minister Michael Gove confirmed the government’s stand, saying that rehearsals for a no-deal Brexit were increasing.

GBP/USD

Throughout the American session, the cable’s rally was stoked mainly by the dollar’s weakness as tracked by the US Dollar Index

Which scored a low of 93.56. The announcement of the FOMC minutes later in the session had a reduced impact on the pound.

The currency pair’s expected performance is possible to be influenced by Andrew Bailey’s speech tomorrow and US dollar dynamics.

The GBP/USD currency pair was trading at 1.2915 at 20:35 GMT, having rallied from a low of 1.2846. The GBP/JPY currency pair was trading at 136.85, having grown from a low of 135.95.