GBP/USD sticks to goodish intraday gains post-US data, focus remains on no-deal vote

   “¢   Market participants remain confident that UK lawmakers will not support no-deal Brexit vote.
   “¢   Mixed US economic releases failed to extend any support to the USD and remained supportive.  

The GBP/USD pair held on to its positive tone through the early North-American session and is currently placed few pips below session tops touched in the last hour.  

With investors looking past the overnight rejection of the UK PM Theresa May’s amended Brexit deal, the pair regained positive traction on Wednesday and picked up the pace since the early European trading session. Market expectations that the UK Parliament will not support Wednesday’s no-deal Brexit vote turned out to be one of the key factors extending some support to the British Pound.  

Meanwhile, the US Dollar bulls failed to capitalize on a goodish rebound in the US Treasury bond yields and remained on the defensive following the release of mixed US macro data, which eventually provided an additional boost and remained supportive of the intraday positive move.

Data released on Wednesday showed that durable goods orders unexpectedly rose 0.4% m/m growth in January but was largely offset by the disappointing core durable goods orders, showing a 0.1% decline during the reported month. Adding to this, the producer price index (PPI) also fell short of market expectations and also did little to impress market participants.

It would now be interesting to see if the pair is able to build on the positive momentum or once again run into some aggressive supply at higher levels as the focus remains on today’s UK parliament vote on leaving the European Union without any deal, which if fails will be followed the last vote for an extension of Article 50 on Thursday.  

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