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GBP Higher as Brexit Text Leaks

Sterling has risen more than 1.2 percent following the leak of a text which outlines the future relationship between the European Union and United Kingdom.

The draft text is now being pored over by representatives of the EU’s 27 remaining members. If agreement can be found, the heads of state will sign off on the document on Sunday.

Donald Tusk, the president of the European Council — a body that represents the 27 Heads of State — confirmed in a tweet that the text had been agreed in principle by negotiators.

Sterling hit a five-day high versus the U.S. dollar after the text was pushed into the public domain. Reacting to the pound’s increase in value, the FTSE 100 has hit a session low.

One key statement within the text is the declaration that both parties have “a trading relationship on goods that is as close as possible.”

The U.K. Prime Minister Theresa May spoke outside Downing Street on Thursday, confirming that the text had been agreed with the EU and claimed the full deal is “within our grasp”.

via CNBC [1]

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Alfonso Esparza

Alfonso Esparza [6]

Senior Currency Analyst at Market Pulse [7]
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza
Alfonso Esparza

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