For now, GBP/USD is on track to sustain another week of strong gains.
Rentokil Initial advanced as it posted its highest level of quarterly organic growth for more than a decade and said it was on course to meet full-year expectations.
The dollar held near a one-month low against its rivals on Thursday as weak data cast a shadow on the outlook for the US economy in the short term with the British pound the only noticeable loser against the greenback on Brexit nerves.
The British pound traded near a five-month high against the United States dollar and the euro after British Prime Minister Boris Johnson and European Union leaders agreed a new deal for Britain to exit the bloc.
However, the market's optimism towards the news was short-lived, as attentions quickly turned back towards Britain's domestic political situation.
Johnson's governing Conservatives relied on the DUP's support for a majority in parliament before a series of expulsions from the Conservative ranks last month left the government well short of a majority, even with the DUP's support.More news: 'Govts must protect horses from slaughter'
Analysts at Deutsche Bank and ING said that, although the deal is likely to fail, the sheer fact that a deal has been struck is good news for the pound. "We think the best way of doing that is with a deal, to leave in a smooth and orderly way".
Johnson, who has lost nearly every important vote in Parliament since taking office in July, said he was confident he would succeed where his predecessor did not - Theresa May's proposal was voted down three times in Parliament. "There isn't a deadline, we want to get a deal done, so we're not going to set ourselves an artificial deadline, we're not going to compromise the negotiation", he said.
An approved deal will probably see sterling settle into a higher range but until the details are nailed down, and the election concluded, there are too many moving parts for a sensible investment perspective.
The S&P 500 shed 0.20 percent the previous day after data showed U.S. retail sales contracted in September for the first time in seven months, in a potential sign that manufacturing-led weakness could be spreading to the broader economy.
Earlier in Asia, most markets ended in the red, with traders unable to take advantage of weak U.S. retail data that raised the chances of another Federal Reserve interest rate cut.More news: Bradley Beal agrees with Washington Wizards to two-year, $72 million extension
GBP/USD Exchange Rate Forecast: Final Full Week before Brexit Date Ahead For now, the official Brexit date continues to be the 31st of October.
"The next move in GBP hinges on the United Kingdom parliament vote this weekend", Petr Krpata, ING's chief European foreign exchange strategist, wrote.
"The pound is reflecting pessimism over the likelihood of whether the deal will be able to pass through parliament tomorrow", said Lee Hardman, currency analyst at MUFG.
The UK government has indicated it will try to avoid extending Brexit again, but a no-deal Brexit is still seen as the worst-possible outcome for Britain's economy and Sterling.
As for the US Dollar, next week's US durable goods orders data could cause some movement.
Wall Street rose as upbeat earnings from Netflix and Morgan Stanley affirmed a strong start to the US reporting season, while the dollar fell against the euro as the common currency got a lift on the long-awaited Brexit deal.More news: Prince William, Kate at Badshahi Mosque join discussion on promoting interfaith harmony