The pound has revived after the bearish beginning of the week since the no-deal Brexit may not take place at the end of October. At the same time, the euro-dollar pair has retraced amid the Fed’s comments about a possible aggressive rates reduction. The pound traders react positively to the news coming from the UK. On Wednesday, the Parliament is going to review a draft bill requiring Boris Johnson to ask for another extension of a Brexit deadline from Brussels. The Prime Minister still insists on snap parliament elections. Johnson has lost the first round. Still, it is hard to predict the outcome of this conflict with the lawmakers. Market participants are acting according to the situation which explains high volatility of the sterling. Early in the day, the pound/dollar pair has almost reached the 1.22 mark. During the previous session, the pair dropped below the level of 1.20. The major currency pair has finally recovered from the six-day losses. The quotes inched up amid the decreased demand for the US dollar. The euro has broken above the 1.20 mark, however, the trend can change anytime. Eurozone retail sales fell sharply in July after rising last month. It was the sharpest decline since December 2018. Meanwhile, the increase in business activity in Europe was slightly higher than forecasted which boosted customers’ confidence. On Wednesday, gold is trading in the red zone but its price remains high. An ounce of gold costs $1,546 today. Investors hope to see the quotes at $1,600 per ounce. These hopes are supported by the Fed officials’ comments. Last night, some of them stated that the regulator could take decisive steps in order to tackle the consequences of a trade war with China. Traders will get more information about the monetary policy plans of the regulator later this week. On Wednesday, New York Fed President John Williams is expected to give a speech, while Jerome Powell will give his comments on Friday.