Sterling creeps back up as Brexit deal hopes return
Sterling has risen against the dollar and euro this morning as investors regain some optimism over a possible Brexit deal.
Prime Minister Boris Johnson was boosted yesterday when hardline Tory rebels signalled that they would be willing to vote for a Brexit agreement if it were brought before the Commons.
This morning, the European Union affairs minister of Finland, which holds the EU presidency, said: “All scenarios are open” and said a deal was possible.
The pound was 0.31 per cent higher against the dollar by 7.50am UK time at $1.267. It was up 0.11 per cent against the euro to buy €1.147.
Sterling dropped considerably yesterday before recovering its losses as last week’s excitement that a Brexit deal could be reached was tempered by more pessimistic noises from the EU and UK side.
“The most significant point to make right now is that the UK government position has undergone a notable transformation over the last couple weeks,” said Deutsche Bank analyst Jim Reid.
He said it has moved “to a position where they are negotiating around a version of the EU’s 2017 backstop with potential concessions” for the Democratic Unionist Party (DUP), the hardline Northern Irish allies of the Conservatives.
Michel Barnier, the EU’s chief Brexit negotiator, will update the bloc’s ministers today at a meeting in Luxembourg on the progress of talks.
(Image credit: Getty)