Sterling jumped briefly above $1.22 Wednesday for the first time since Aug. 30 as investors became slightly more optimistic about Brexit after British lawmakers seized control of the parliamentary timetable to try to block a no-deal Brexit.
The latest sterling moves take it further off three-year lows of $1.1959 hit before the parliament vote.
By 15:45 GMT, sterling was up 0.8% at $1.2189, having vaulted briefly to a one-week high of $1.2220 as it was boosted also by a 0.4% dollar pullback sparked by Tuesday’s dismal U.S. manufacturing data.
Against the euro, the pound was up by 0.4% at 90.48 pence.
Sterling volatility gauges also eased, with two-month implied volume, a contract capturing the Oct. 31 Brexit deadline, falling from three-year highs reached on Tuesday.
Source : Reuters