GBP/USD rates hit a high of 1.2797
GBP made another decisive move against the USD during Tuesday’s trading. GBP/USD rates hit a high of 1.2797, which is some of the highest levels the Pound has traded at since March. Sterling’s recent upturn has coincided with what seems like an increased chance that the UK and Europe will reach an agreement over a Brexit deal, before the impending deadline of March 31st.
Whilst March 31st is the official deadline for the UK to exit the single bloc, a deal must be ratified by early next week in order to allow enough time to tie up all the loose ends. As such, time is fast running out for any agreement to be made and thus investors many well remain wary.
Indeed, it is interesting to note that the bookmakers also remain unconvinced that a deal will be reached by the 31st, with the likely outcome remaining heavily weighted towards no deal being agreed by the current deadline.
How will the Brexit effect Sterling?
With Sterling’s value is likely to be driven by this week’s Brexit outcome, Bank of England (BoE) governor Mark Carney is predicting increased market volatility over the coming days. With the US seemingly edging closer to a trade deal with China, there are many external variables that could have a big impact on GBP/USD exchange rates over the coming days.
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