AFP, New York :
The pound rallied Tuesday to five-month peaks amid optimism over a breakthrough in Brexit talks while Wall Street stocks rebounded following an upbeat start to earnings season.
Sterling got an early boost from the European Union’s top Brexit negotiator flagging the possibility of reaching a divorce agreement this week, reviving hopes that Britain might yet avoid crashing out of the bloc without a deal.
With the exit deadline coming up on October 31, Michel Barnier’s comments rekindled hopes that a compromise might be taking shape.
The British currency then got another shot in the arm when reports suggested that negotiators in Brussels were getting close to a deal.
It hit $1.28 in the late London afternoon, a level last seen in May, and also rose strongly against the euro.
Sterling jumped “as reports said UK and EU negotiators are closing in on a draft Brexit deal,” said Neil Wilson, Chief Market Strategist at Markets.com.
Barnier told reporters: “This work has been intense all along the weekend and yesterday because even if the agreement will be difficult – more and more difficult to be frank – it’s still possible this week.”
Even before he spoke, Britain’s Daily Telegraph said a divorce agreement was forming, with EU and British negotiators hailing a positive day of talks on the Northern Ireland issue.
The pound rallied Tuesday to five-month peaks amid optimism over a breakthrough in Brexit talks while Wall Street stocks rebounded following an upbeat start to earnings season.
Sterling got an early boost from the European Union’s top Brexit negotiator flagging the possibility of reaching a divorce agreement this week, reviving hopes that Britain might yet avoid crashing out of the bloc without a deal.
With the exit deadline coming up on October 31, Michel Barnier’s comments rekindled hopes that a compromise might be taking shape.
The British currency then got another shot in the arm when reports suggested that negotiators in Brussels were getting close to a deal.
It hit $1.28 in the late London afternoon, a level last seen in May, and also rose strongly against the euro.
Sterling jumped “as reports said UK and EU negotiators are closing in on a draft Brexit deal,” said Neil Wilson, Chief Market Strategist at Markets.com.
Barnier told reporters: “This work has been intense all along the weekend and yesterday because even if the agreement will be difficult – more and more difficult to be frank – it’s still possible this week.”
Even before he spoke, Britain’s Daily Telegraph said a divorce agreement was forming, with EU and British negotiators hailing a positive day of talks on the Northern Ireland issue.
