The British parliament is about to pass the Brexit bill: a law that allows the government to formally table Article 50 to leave the European Union. Westminster has passed the previous hurdles with wide majorities. Rebellions in both the governing Conservative Party and opposition Labour have been vocal, but quite minor.
Sterling has not seen such smooth sailing. The pound has had a rollercoaster week so far. It fell just below 1.2350 only to jump back up and hit resistance at 1.2540. Support awaits at 1.2415, followed by 1.23. Above 1.2540, resistance awaits at 1.2630.
The US dollar managed to recover as the White House frenzy somewhat slowed down. After the raft of executive orders, Trump and his team are toning down their improvising. In the UK, Kristin Forbes, an external member of the Monetary Policy Committee, talked about hiking interest rates. This has also helped cable recover. It is important to note that Governor Carney and most of his colleagues are firmly on hold.
Another member, Jon Cunliffe, will speak later today. The calendar of UK economic indicators is quite empty.
More: GBP: ‘No Fallback Options For Hard Brexit’; We Stay Core Short Sterling – Deutsche Bank
Here is the pound/dollar chart:
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