The pound was on track for its first weekly gain in a month, after climbing on a report that the European Union’s chief Brexit negotiator may be prepared to offer the U.K. a two-year transition period.
Sterling rose to the highest in nearly two weeks after German newspaper Handelsblatt said Michel Barnier will seek support for the proposal at a meeting of EU ambassadors in Brussels on Friday. The offer would be tied to Britain meeting its financial obligations to the bloc, the report said, leading the pound to recover late on Thursday from a selloff caused by Barnier saying Brexit talks had reached an impasse.
The Handelsblatt report “prompted an aggressive sterling spike,” said Canadian Imperial Bank of Commerce’s head of Group-of-10 currency strategy Jeremy Stretch in emailed comments. This is still playing out but “we would use the sterling spike as an opportunity to sell the pound at better levels,” he said, adding it remains highly unlikely that EU leaders would sanction the opening of talks on a post-EU transition deal next week.
Source: Bloomber Pro Terminal
Trader-G.Bozhidarov
Read more:
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.