Sterling Rallies On Breakthrough Optimism


Yesterday Sterling jumped to its highest levels since the summer amid rising optimism about a potential breakthrough in Brexit negotiations. The Pound was trading up by more than 3% and the rally reverses losses suffered during the recent summer slump, and represents the highest rates in five months.

This is due to rising hopes that Prime Minister Boris Johnson will be able to secure a Brexit deal ahead of key talks later this week. EU chief negotiator Michel Barnier indicated that there was still the possibility of a deal being reached. However, he said the two sides needed to reach an agreement on a legal text by the end of the day.

The comments have boosted confidence that Johnson could have the chance to seek approval for an exit by the end of this week. Boris is currently compelled by law to seek an extension to the current Halloween deadline if he has not secured an exit agreement by the end of Saturday.

Key Announcements

09:30 – GBP: Consumer Pricing Index
13:30 – USD: Core Retail Sales forecast at 0.2%
13:30 – USD: Retail Sales forecast at 0.3%
14:00 – GBP: BOE Gov Carney Speaks