Brexit deal news increases Sterling’s value

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  • Deal between the EU and Britain likely to be finalised on Monday, according to a Dow Jones report
  • Analysts say that it’s not yet time to celebrate
  • If ‘no deal’ rumours are put to rest, Britain’s currency will keep rising

 

The GBP/USD currency pair rose over 1.32 on Wednesday after Michel Barnier, the European Union’s Brexit negotiator, said that progress is being made on Britain’s exit from the bloc.

Speculation about the deal has ensued this week with news coming from analysts that an agreement could be reached by Monday. Analysts say that it is not yet time for a celebration though as the European Union negotiates to the last minute.

Pound Sterling is experiencing highs against the American dollar and the Euro because of the possibility of a withdrawal agreement with the European Union. The agreement that is expected to be reached by Monday was reported by diplomats, according to reports. However, they did not want to be named as there is still a lot of room for sudden changes. The deal is said to preceed a meeting between EU leaders.

A Dow Jones report says that British and EU officials have already narrowed down their differences noting that the closed door meeting will impact the British pound. According to the BBC’s Politics Editor Luara Kuenssberg, these closed door meetings have prompted officials to shuttle from Brussels to Westminster and back. Kuenssberg adds that said meetings are “really important.” The editor also says that Raab will likely “appear alongside Barnier in Brussels on Monday and draft conclusions are signed off by foreign ministers in Luxembourg on the same day.”

Diplomatic sources separate from the ones that reported that an announcement will be made on Monday told Reuters a week ago that officials are close to reaching an agreement.

Foreign exchange analyst at ING Bank N.V. Christopher Turner says that the currency is “being buoyed by expectations” of a deal. Turner adds that the country has been there before. It is noted by Turner that the news may be a positive one.


Andrea Barnes
Editor
Andrea is Communications Manager at FXcompared. Prior to joining FXcompared, she worked as a communications consultant for companies seeking guidance with their social media, marketing and digital… Read more

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