Today’s movements for the pound have been dictated to by comments from the European Unions chief negotiator, Michel Barnier. This morning his comments lead to sterling falling to a 3 week low of 1.1085 as he said there had not been enough progress to move to the next stage of Brexit talks. He said there was “new momentum” but still “deadlock”
David Davis and Barnier have been speaking at the fifth round of Brext talks in Brussels and following his comments the pound fell nearly 1 cent.
Pound goes back up against the Euro
However, come the afternoons session Barnier surprised the market by indicating he may offer the UK a two-year transition stay in the EU market, although his offer was tied to the UK meeting exit obligations.
As a result sterling this afternoon rallied against a number of currencies, pushing to 1.12 GBP/EUR and 1.35 for cable (GBP/USD) – a potential buying opportunity in this uncertain market?