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Sterling Boosts On Positive Brexit Negotiations

• Posted by currencies in Bank of England, Brexit, Currency, Dollar, Economy, EUR, GBP, Sterling, UK, Uncategorised
• October 5, 2018
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The European Union’s Brexit negotiators told national diplomats in Brussels late last night that a divorce deal with Britain was “very close”, according to two sources present at the meeting.

The EU signalled that it was engaging with new proposals emerging in Britain on how to avoid extensive checks on the Irish border after Brexit, a key potential deal-breaker in the unprecedented talks.

Following the news, sterling rose to a 10-week high of 88.19 pence against the euro. The British currency also hit a five-day high versus the dollar of $1.3053.

The two sides are trying to push the divorce deal as well as an agreement on post-Brexit relations above the line in time for two summits of the bloc’s leaders scheduled for Oct. 17-18 and Nov. 17-18.

A member of EU Brexit negotiator Michel Barnier’s team briefed diplomats of the 27 states remaining in the bloc on latest developments on Thursday afternoon.

That person said progress was also being made on other outstanding issues, including the policing of any agreement and protecting goods from special origins, according to the sources.

The member of Barnier’s team said he was open in principle to a planned British proposal on the emergency Irish border fix but that it has not yet arrived in writing from London and would need to be carefully analysed once it did.