Pound Sterling recovered earlier losses from the Euro and Dollar during the noon session Monday as markets turned their attention to the House of Commons, where Prime Minister Theresa May will soon make a statement and MPs will begin attempting to assert their preferences on the government.
The Pound staged a strong riposte against the Euro, Dollar and other currencies Friday after the European Council left the door open for the UK to request a lengthy delay to its exit from the bloc, which could ultimately give way to a Brexit-nullifying referendum or general election.
The Pound extended losses against the Euro and Dollar in noon trading Thursday after it became clear European leaders could be planning to use the threat of a "no deal Brexit" to bounce the UK Parliament into backing Prime Minister Theresa May's EU Withdrawal Agreement.
The Pound could rise by 10% against the Dollar and Euro over the coming months as the Brexit saga is brought to an end and the Bank of Englnad becomes able to lift its interest rate again, according to analysts at Bank of America Merril Lynch, who've told clients to buy the British currency.
The Pound hit the ropes on Wednesday after the market was left disappointed by a government request for only a short delay to the UK's exit from the EU that is threatening an alread-embattled Prime Minister, but nonetheless a deal and the "softest" of all possible orderly exits now appears to be in the pipeline.
The Pound was treading water while caught in the glare of Brexit-shaped headlights on Tuesday, leading it to overlook a robust set of February labour market figures from the UK economy, which have led economists to speculate that another Bank of England (BoE) interest rate hike may not be far off.
The Pound was treading water agains the Euro and Dollar Tuesday as financial markets attempt to anticipate the impact that a surprise intervention by House of Commons Speaker John Bercow will have on the Brexit process over the coming days and weeks.
The Pound was softer at the beginning of the new week as investors wait to hear if Prime Minister Theresa May will put her EU Withdrawal Agreement before parliament again, while attempting to gauge whether she will have the numbers to see it pass.
Pound Sterling is seen coming off its weekly highs ahead of the weekend with foreign exchange traders cutting back exposure ahead of what promises to be another potentially explosive week in UK politics.