In quite the reversal from Tuesday’s 34-year lows – and brushing off a poor services PMI – Parliament’s attempts to avert a no-deal Brexit have put a spring in the step of the pound.
Admittedly it couldn’t quite maintain its lunchtime giddiness, where it found itself trading above $1.22. However, it was still up 0.8% against the dollar, and 0.3% against the euro, its weaker performance against the latter due to a decent morning for Eurozone PMIs.
That this comes despite the still present threat of a general election shows just how desperate the currency is to avoid Britain crashing out of the EU without an agreement in place – some uncertainties, after all, are more palatable than others.
Though the FTSE 100 remained in the green, it did eventually succumb somewhat to the strength of the pound. In other words, it clung onto a half a percent increase, but slipped from its 7330-crossing one-month highs.
Elsewhere the rest of the markets continued to ride high off a combination of a temporarily reassuring Chinese services PMI, and the calming of the political situation in Italy. The DAX and CAC 40 rose 0.8% and 1.2% respectively to hit 12000 and 5520, while the Dow Jones climbed 175 as it eyed 26300.
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