The British Pound Sterling on Wednesday, January 25, jumped higher against the euro and dollar with traders citing options expiries and some positive expectations for Prime Minister Theresa May’s weekend meeting with U.S. President Donald Trump.
Pound soared to a six-week high of $1.2598. It gained as much as 0.4 percent to 85.30 pence per euro, an almost three-week high.
“There have been people chasing options expiries and some stop losses this morning, but there are also a number of people talking about the chances of some positive news for the UK this weekend,” said a trader with one international bank in London.
“It seems like there is a reasonable chance we may see a strong headline on U.S.-UK trade at some stage.”
“The big moves in sterling came yesterday and now it is a case of pausing for breath,” said Societe Generale currency analyst Alvin Tan.
“What happens in parliament will now be important as there appears to be a push for the government to publish a white paper on its Brexit plans.”
The pound took a rollercoaster ride on Tuesday after a Supreme Court ruling that Britain’s government must go through parliament before starting talks to quit the EU and analysts continue to consider the political fallout.
