The pound rose for a second straight day as risk appetite improved and expectations of an agreement on Brexit rose, prompting investors to buy sterling after a sell-off last week after British Prime Minister Theresa May's proposal was rejected.
The British Pound is currently trading at 1.3145 after recording a high of 1.3166 yesterday. As Britain leaves the EU in just 6 months, no agreement has yet been reached on exit conditions.
Despite comments by ECB governor Mario Draghi on inflation yesterday, during his testimony before parliament, the euro slipped away from yesterday's high of 1.1815, a 3 ½ month high, currently trading at 1.1760 levels.
The dollar is currently stabilizing against a basket of currencies near its daily low of 94.20, awaiting the Fed meeting tomorrow, which is widely expected to raise interest rates to 2.25%. The focus will then shift to the Fed's expectations and the tone of Fed Chairman Jerome Powell during the press conference.
Against the Japanese yen, the dollar dropped some of its gains but remains high at 112.88 after the BoJ's July minutes. The minutes showed that some Bank of Japan members said the central bank should consider more seriously the possible risks of a ultra-easing policy.
