The Pound is testing the $1.30 level on the morning of yet another potentially decisive day for the Brexit process, as Prime Minister Boris Johnson tries to get parliamentary approval for his withdrawal bill and timetable in time for the October 31st deadline.
Should he succeed, the pound is likely to continue to rise and few will be surprised if it reaches $1.35, as the markets will at this stage see a negotiated exit from the EU, with a transition period, as the best possible outcome. On the other hand, if the forces opposing the government’s plans succeed, sterling is likely to retrace some of the recent gains, as uncertainty over the outcome of the process will once again make the pound unattractive to Brexit-fatigued investors.
