The pound rallied over 1% from the U.S. dollar on Wednesday, after British Pm Theresa May was forced cave in to MPs over just how much influence Parliament has over her Brexit plan.
GBP/USD hit 1.2325 during European morning trade, the session high the happy couple subsequently consolidated at 1.2284, up 1.31%.
Cable was prone to find support at 1.2086, Tuesday’s low and resistance at 1.2453, Monday’s high.
The British Pm was effectively pressed into allowing Tory MPs on Tuesday to election for any Work motion with greater scrutiny of her Brexit proposals.
The motion, which demands that MPs scrutinise May’s negotiating position before she starts withdrawal talks along with other EU states, isn’t binding around the government but underlines the weakness from the Prime Minister’s position in Parliament.
The pound have been under broad selling pressure since a week ago among growing concerns on the ‘hard Brexit’ for Britain.
Citing leaked government papers, the Occasions reported the U.K. could lose as much as ￡66 billion annually within “hard Brexit”.
Meanwhile, market participants were awaiting the minutes from the Fed’s September policy meeting for hints around the central bank’s future policy moves.
Interest in the U.S. dollar still continued to be supported, because the odds for any December rate hike passed the 70% threshold .
Sterling seemed to be dramatically greater from the euro, with EUR/GBP tumbling 1.49% to .8983.