Pound Sterling rises as market expects UK to avert no-deal Brexit
Pound Sterling rose in early London trading on Wednesday as investors awaited a vote in Britain’s parliament that most expect will see the prospect of a no-deal Brexit defeated.
The pound, which has lurched upwards and downwards in volatile trading this week, has found some support despite Prime Minister Theresa May badly losing a vote on her Brexit withdrawal agreement late on Tuesday.
Britain’s parliament will vote again on Wednesday on whether the United Kingdom should leave the European Union on March 29 without a deal, which most economists say would cause significant harm to the economy.
May has given lawmakers in her party a free vote and investors expect parliament will vote against a no-deal Brexit.
The pound rose 0.4 per cent to the day’s high of 1.3120 dollars at the London open – putting the currency about half way between this week’s lows of 1.2945 dollars and its high of 1.3290 dollars.
Against the euro, sterling was also stronger, hitting 86.020 pence but was below 22-month lows of 84.755 pence touched on Tuesday before hopes for May’s Brexit deal to pass were crushed.