Pound jumps over a percent on Brexit deal optimism
The Pound rallied on Thursday after optimistic comments from German Chancellor Angela Merkel led markets to hope a Brexit deal could still be in sight. Sterling jumped by over 1.0% against the US Dollar, Euro, Australian Dollar, New Zealand Dollar, South African Rand, and other currencies, breaking through some key barriers. On Wednesday, Merkel stated that she hoped the two sides could ‘find a solution in the next 30 days’, but markets have seen Thursday’s comments from the German Chancellor as playing down the tight deadline and having the potential to give the UK more time.
While this positively perceived news has allowed the Pound to climb, the Irish border backstop is still a sticking point for negotiations and the October Brexit deadline is fast approaching. This means there could be further volatility ahead as Boris Johnson attempts to find a solution to the UK’s Brexit woes.
If you’d like to find out how you can take advantage of the Pound’s rally, contact your Dealer or call us today on 020 7989 0000.
Interbank highs so far today:
GBP/USD – 1.2273
GBP/EUR – 1.1076
GBP/AUD – 1.8155
GBP/NZD – 1.9264
GBP/CAD – 1.6308
GBP/SEK – 11.8776
GBP/DKK – 8.2569
GBP/NOK – 11.0198
GBP/CHF – 1.2065
GBP/ZAR – 18.6649
GBP/JPY – 130.698
GBP/SGD – 1.7014
GBP/HKD – 9.6100
Correct as of 15:20 BST