Sterling ascends as report soothes concerns over tough Brexit

On Wednesday, the British pound soared during Asia trade, ascending more than 1.5% against the evergreen buck, in reaction to a media report, dropping a hint at a softer Brexit scenario.

Meanwhile, the common currency hit the lowest value since late July against the major American currency, following increased bets that the Fed will increase rates this year.

The sterling ascended to an intraday peak of $1.2327, thus recouping most of its overnight losses. The British pound traded at $1.2302, higher than $1.2124, where the currency was positioned late on Tuesday in New York.

A Bloomberg report pointed out that British Prime Minister Theresa May has already accepted holding a parliamentary vote on her eventual intention for taking the UK out of the EU — a development, which could restrict her ability to push for tough Brexit.

Traders started covering short positions right after an uptick in the sterling on the report. 

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