The growing division within the UK Prime Minister's own party became apparent after a parliamentary vote yesterday did little to advance the agenda related to Theresa May's Brexit. That earlier pushed the pound sterling to a minimum of 8 months against the US dollar. Analysts say the Prime Minister's acceptance of certain demands made by Brexit supporters only exposed how vulnerable she really is in Parliament, resulting in members of her conservative party on both sides of the Brexit affair in the attack and hampering her ability to continue negotiations with EU Officials.
As reported at 11:22 a.m. (BST) in London, the GBP / USD was quoted at $ 1.3243, a gain of 0.04% and rising from the session's low of $ 1.3228; the pair had reached a peak of $ 1.3269. The EUR / GBP is trading at 0.88515 Pence, up to 0.07%; the pair has varied from 0.88430 Pence to a maximum of 0.88643 Pence.
Mark Carney weighs in the Bank of England
Earlier in the day, the Governor of the Bank of England, Mark Carney, testified before the Select Committee of the Treasury. In his testimony, he issued a clear warning about the serious impact on the UK economy if the government fails to reach a Brexit agreement. According to him, it would have a material impact on interest rates, suggesting that monetary tools would be used to stimulate the economy if a disorderly Brexit occurred.