The pairing stabilised despite US bond yields continuing to struggle following Federal Reserve’s slashing of its forecast for interest rate hikes for 2019.
Rick Meckler, a partner at Cherry Lane Investments said: “The market in general has battled this idea of whether there is a global slowdown occurring, and more specifically, whether it is going to impact the US.”
In US political news, President Donald Trump saw his controversial Mexican border wall allocated $1 billion from the Pentagon after Congress failed to gain a two-thirds majority to overturn the President’s veto.
In the UK, sights have turned on the House of Commons with MPs due to partake in ‘indicative votes’ which will indicate their preferred Brexit options.
Steve Brine, the Former Health Minister said: “MPs should be free to vote as they see fit.
“This is bigger than all of us, bigger than the parties; it’s country first.”
Sterling traders are feeling hopeful that this evening’s votes will potentially break the Brexit deadlock.
The pound has also benefited from news that the UK’s departure date from the EU could be extended to April 1 2020.
An official in Brussels said: “That would safeguard our work during this year and basically allow us to turn to it again early next year.
“Giving more than that time runs the risk of mischief by the UK.
“We have seen the talk of Brexiters of trying to stay in and cause trouble. So such a time limit is not a bad idea.”
Yesterday’s news that arch-Brexiteer Jacob Rees-Mogg would effectively back Mrs May’s Brexit deal in light of the alternatives has continued to provide optimism in traders that the UK will leave the EU with a deal.
No-deal Brexit fears, as a result, have begun to dwindle, benefiting Sterling.
The pound US dollar exchange rate is expected to remain dictated by Brexit developments today, with any indication that Mrs May’s withdrawal is gaining more traction amongst MPs likely to prove positive for Sterling.