Pound rockets to nine-month high as no-deal Brexit rejected

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The pound shot higher against its currency peers on Wednesday evening, driven higher by Parliament’s vote on a no-deal Brexit.

Sterling continued its upward trend on Thursday morning, with GBP/EUR climbing to €1.1749, GBP/USD edging up to $1.3314 and GBP/CAD rallying to C$1.7716, while GBP/AUD and GBP/NZD both surge, striking AU$1.8838 and NZ$1.9469 respectively.

What’s been happening?

The pound roared higher on Wednesday, finding considerable support from investors as MPs ruled out a no-deal Brexit, thus paving the way for a debate on delaying Brexit later on Thursday evening.

With markets laser-focused on the Brexit vote, the pound barely registered Chancellor Philip Hammond’s Spring Statement, despite UK growth being revised down from 1.6% to 1.2% for 2019.

This rally in the pound resulted in the GBP/EUR exchange rate appreciating over a cent yesterday, with the euro retreating in spite of a stronger-than-expected rebound in Eurozone industrial production in January.

Meanwhile, the release of some surprisingly robust US durable goods orders figures were not enough to hold back the GBP/USD exchange rate on Wednesday, with the pound leaping over 1% against the US dollar in the run up to yesterday’s vote.

Source: Currencies Direct