UK Government Preparing For No-Deal Brexit, While The Pound Rallies

 The GBP/USD currency pair later recovered even after the UK declared it was actively managing a no-deal Brexit position as the October 15 deadline approaches.

The GBP/USD currency pair later surged even after the UK declared it was actively preparing a no-deal Brexit situation as the October 15 deadline nears.

On Wednesday, the GBP/USD currency pair fell to a low of 1.2846 in the early American session before returning near its daily highs of 1.2929 announced earlier in the London market.

The currency pair surged higher briefly on Wednesday, shifting Tuesday’s massive decline before Ireland’s Foreign Minister Simon Coveney declared that the EU’s top negotiator Michel Barnier would not expedite talks in the UK shifts its stand on state support.

Although, the UK’s lead Brexit negotiator David Frost spoke to reporters that the UK was willing to trade on Australia terms if a deal could not be reached. The release of the disappointing UK house price index report by the Office for National

Statistics also suited the pair’s original decline

Cabinet Minister Michael Gove confirmed the government’s stand, stating that preparations for a no-deal Brexit were developing.

During the American session, the cable’s rally was primarily stoked by the dollar’s vulnerability, followed by the US Dollar Index, which obtained a low of 93.56. The release of the FOMC minutes later in the session had a diminished impact on the pound.

The currency pair’s anticipated performance is likely to be affected by Andrew Bailey’s speech today and US dollar dynamics.

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