The pound to dollar exchange rate hit a five-month high today. At the time of writing, it had risen to $1.3005, according to Bloomberg. During the day, the exchange rate fluctuating, taking a slight dip to $1.2984 at 2.07pm, according to Bloomberg. Michael Brown, Senior Analyst at Caxton commented: “Sterling has risen above the key $1.30 level this morning for the first time since May, as optimism that a Brexit deal will pass in the Commons continues to build.
“The numbers now appear to be present for a ‘meaningful vote’ on the new Brexit deal to succeed, however it remains unclear whether Speaker Bercow will permit such a vote to take place.
“Should a vote not take place, attention will shift towards tomorrow’s vote on the 2nd reading of the Withdrawal Agreement Bill – the legislation that implements the deal in the UK.
“Such a vote, if passed unamended, would pave the way towards an orderly Brexit, and should see the pound continue to press higher.”
This weekend, the Prime Minister sent an unsigned version of the letter specified under legislation to demand a delay to Brexit – currently scheduled for October 31.
Now, the European commission has confirmed it is considering an extension.
Mr Johnson has tabled a “meaningful vote” on his newly agreed Brexit deal in the House of Commons this afternoon.
However, Speaker Mr Bercow will have the final say on whether the vote is held.
He told MPs during Saturday’s special sitting: “Rather than pronounce with sound and fury now, I will reflect on the matter and report to the House on Monday.”
On Friday, the pound to US dollar exchange rate was around $1.287, nearing five-month highs.
However, it was on Thursday when the pound surged to $1.298, following an announcement that the UK and EU had secured a Brexit deal.
UK Prime Minister Boris Johnson and EU Commission President Jean-Claude Juncker confirmed a Brexit deal had been agree between UK and EU negotiators.
Mr Johnson tweeted: “We’ve got a great new deal that takes back control.”
Meanwhile, Mr Juncker wrote: “Where there is a will, there is a #deal – we have one! It’s a fair and balanced agreement for the EU and the UK and it is testament to our commitment to find solutions. I recommend that #EUCO endorses this deal.”
Meanwhile, the pound to euro exchange rate stood at 1.1635, at 2.20pm today, according to Bloomberg, having traded at 1.1577 earlier today.
Michael Brown, Senior Market Analyst at Caxton FX, said: “Sterling held relatively firm on Friday, and has chalked up minimal losses at Sunday’s FX open, despite hopes of immediate ratification of the new Brexit deal having been dashed after ‘Super Saturday’ became ‘Not-So-Super Saturday’ as the House of Commons withheld approval of the deal until implementing legislation is passed.
“Sterling traders will remain glued to political developments once again today, with the government set to attempt to hold another meaningful vote on the Brexit deal this afternoon.”