Sterling Bounces As Labour Prepares Bid To Avert No-Deal Brexit

Sterling rose on Thursday to the highest in more than a week, supported by news that the opposition Labour Party was mounting a bid to bring down Prime Minister Boris Johnson and stop him taking Britain out of the EU without a deal.

GBP was also was lifted by better-than-expected retail sales, which came on the heels of Wednesday’s higher inflation numbers that raised hopes the economy might be in better shape than previously thought.

Labour said it would call a vote of no-confidence in Johnson’s government as soon as it believes it can win it and would form a temporary government under leader Jeremy Corbyn to delay Brexit.

By 1530 GMT on Thursday, the pound was 0.5% higher at $1.2136 against USD, having briefly touched a high of $1.2150. However it remains not far from the 31-month low of $1.2015 it reached on Monday. This morning GBPUSD is trading at $1.2124.

Against the euro, the pound rose by 0.8% at 1.0905, standing well off recent 10-year lows of 1.0722.