British Pound Finishes at 6-Month High vs. US Dollar Ahead of Key Brexit Deal Vote

The British pound closed on Friday just shy of the major psychological level at 1.3000, finishing off one of its best weeks against the U.S. dollar this year (3% gain against USD this week, 6.1% gain since Oct. 10). With Friday's close of the GBP/USD currency pair at 1.2979, the pound is now trading at its highest against the U.S. dollar since May 13, 2019.

Investor and speculators' confidence in the pound is very high ahead of Parliament’s key vote on the new Brexit deal agreed by U.K. Prime Minister Boris Johnson and the EU.

Comments made by Bank of England Governor Mark Carney, who said he expects investment in the UK economy to "rebound if the deal is accepted," added even more fuel to the pound's rally into the close of Friday's trading session.

"Many paths for monetary policy following Brexit," says Carney.

While investors' optimism and positive comments from Carney have lifted the pound out of its multi-month slump, some bank analysts have said the vote is too close to call.

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