GBP/USD rises back to the 1.2800 zone after Fed’s minutes

• US dollar consolidates losses across the board after FOMC minutes. 
• Cable rises and holds near daily highs after minutes but remains limited on UK political uncertainty ahead of Brexit deal vote. 

The GBP/USD pair rose toward daily highs following the release of the FOMC minutes boosted by a slide of the US dollar that printed fresh lows across the board. 

The minutes came in line with recent comments from Fed’s official mentioning that the FOMC could be more patient about further policy tightening. According to the minutes, “many participants expressed the view that, especially in an environment of muted inflation pressures, the Committee could afford to be patient about further policy firming”. 

The greenback was already lower on the back of those comments and extended losses after the minutes. Cable rose to 1.2798, unable to hit new intraday highs. Near the end of the session was trading at 1.2785/90, up 80 pips for the day but still limited by the 1.2800 area. 

The pound remains limited by Brexit and UK political developments. Today PM May lost another key vote on Brexit legislation. The Parliament voted for an amendment to force the government to announce the next plans if the Brexit deal fails to pass.