Pound US dollar exchange rate: GBP/USD rises on hopes for a Brexit extension

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Genuine improved after the UK’s Chief Brexit Negotiator, Stephen Barclay settled that Prime Minister Boris Johnson would respect the Benn Act and ask for an EU extension if an agreement can’t be reached by Saturday. Mr Barclay said: “I can confirm, as the PM has again set out, that firstly the government will comply with the law. And secondly, the authority will comply with undertakings given to the court in respect of the law.”

At the changeless time, the pound rose on renewed optimism for a resolved Brexit sell ahead of tomorrow’s EU Council Summit.

Michel Barnier, the EU’s chief Brexit ambassador, seemed confident that a Brexit deal would be secured by the end of the day. 

Notwithstanding, a lack of consensus among Democratic Unionist Party (DUP) members could jeopardise any transaction on a parliamentary level, limiting Sterling gains as Boris Johnson now meet withs an uphill struggle in winning over the Northern Irish voice.

In UK commercial news, today saw the UK’s year-on-year inflation figure undercut forecasts, orating steady at 1.7 percent. But with Brexit dominating the headlines, profitable developments have had little effect on pound movement.

Meanwhile, the US dollar mitigated against the pound following today’s US retail sales control troop figure for September which fell below forecasts from 0.3 percent to 0 percent.

The information dampened market sentiment in the “greenback”, with weakening retail sellathons further bolstering the case for another Fed rate cut. 

US-China trade uncertainties pursue to weigh on the US dollar following a US Congress’ vote to increase pressure on Hong Kong after the Chinese control clamped down on protestors. China retaliated by threatening “strong countermeasures”. 

Brexit phenomena will continue to drive the GBP/USD exchange rate throughout this week, with any vestige of a UK-EU breakthrough likely to spark another buying frenzy in the crush. 

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