The pound jumped late Wednesday, hitting an intraday high after the British Parliament vetoed the possibility of no agreement to withdraw from Europe under any circumstances.
The non-binding vote will increase pressure on British Prime Minister Teresa May to rule out the possibility of a "no agreement" withdrawal, paving the way for delaying the parliamentary vote on Britain's withdrawal. If Britain really seeks to postpone its withdrawal, it will need the consent of 27 other EU members.
The pound rose 1.39% to $1.326 in late trading against the dollar, and the pound fluctuated in the 3.5-cent range against the dollar this week on a roller coaster ride. The pound remained slightly below the post-ballot high of $1.328 against the dollar, as uncertainty about the exit process and the future path remained.
The dollar weakened Wednesday after new inflation data increased the possibility that the United States would not raise interest rates in the short term.
Data released Wednesday by the U.S. Department of Labor showed that the U.S. Producer Price Index (PPI) barely rose in February, the smallest year-on-year increase in more than a year and a half. This is the latest sign of moderate inflation and supports the Federal Reserve's (FED/Federal Reserve) wait-and-see attitude towards further interest rate increases this year.
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