The pound’s partial recovery during Asian trading hours was due to investors adjusting positions ahead of the comments on Tuesday, as Britain gets set to launch two years of EU departure negotiations.
“Negotiations of this size and importance are bound to involve an element of bluff to ensure that the UK would get the best possible deals,” Stephen Innes, a senior trader at OANDA forex firm, said in a commentary.
“Without actual confirmation of these ‘hard’ measures, we could be viewing little more that sell the rumour, and we may end up buying the fact.”
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