The US dollar is in retreat since morning after the Democrats won control of America’s House of Representatives in a setback to Donald Trump. Analysts also expect that there will now be gridlock on Capitol Hill as the House will have the numbers to veto the policies of Trump.
With the US dollar weakening, the pound has risen to a three week high to $1.314. The euro is also trading at $1.147 against the dollar.
Separately, the pound has also got a boost following a BBC report that Britain is close to reaching a deal with the European Union less than five months before it leaves the bloc.
The BBC reported that May planned to give a speech on Nov. 19 saying she had delivered on the referendum with a deal which brings the country back together.
But a spokesman at May’s Downing Street office dismissed the report in which the BBC cited a document entitled “Brexit Communications Grid Summary”.