GBP rally continues as more positive Brexit talk unravels

Published date: 10/10/2019

Following the meeting between the Irish and British PMs, Varadkar and Johnson, the joint statement suggesting not only constructive talks but a possible pathway to a potential deal has sent GBP higher across the board.  The Irish PM will now consult with the EU Task Force while the UK Brexit Sec will meet Michel Barnier tomorrow to build on what seems to be significant developments today.  

Adding to this, Irish Correspondent Hugh O'Connell reports that progress has been made on '3 issues', which can be seen as a good basis on which to carry the talks forward to a credible solution.  Irrespective of the details, NY names are sending Cable higher to push the mid 1.2300's in thinner markets, though from current levels, we expect to see sellers starting to show their hand again from 1.2370 or so.  

EUR/GBP has also been hit hard, back down into the low 0.8900's, with the figure level lower down likely to be the next point of support, representing technical as well as psychological levels here.  

Traders are concentrating on developments in Brexit, and as we saw this morning, the softer data had a minimal impact - indeed most data today had a similar effect, with the USD also losing out against most pairs apart from the JPY and CHF.


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