Pound spikes on new Brexit hope, as the UK and EU pledge to go the extra mile.

It was Monday, then Wednesday then Sunday, as the deadline for a Brexit deal to be agreed, if not the UK would start 2021 freed from the EU but with no deal in place, viewed as the worst possible start got Britain outside of the EU. Sundays most recent deadline set by both sides again failed to deliver the outcome many had hoped for, with it billed as a make-or-break moment. By the end of the day the only thing that had been mutually agreed was that UK and EU would be going the extra mile in their attempts to get a deal done.

This helped eased the fears that talks would end on Sunday resulting with no deal agreed for the UK, and gave new optimism with both parties lead by UK prime minister Boris Johnson and EU commissioner Von Der Leyen pledging to go the extra mile in attempt to finally get it over the line. Pound sterling reacted well to this news as soon as trading markets opened on Monday, with the pound seeing big gains against all currency pairs, with highs today so far seen - 1.3445 GBPUSD, 1.1052 GBPEUR, 1.1908 GBPCHF, for a live update on the currencies you need to exchange give us a call today on +44 204 524 2780.

So, what next?

Michel Barnier has said that two conditions remain unsolved in the Brexit trade negotiations after talks were extended on Sunday. The two conditions are ‘The UK-EU split on state aid’ and ‘Fisheries’, which Barnier stated the UK is now backtracking on. However in a change of tone from last week, Barnier seemed more optimistic saying ‘negotiators will give every chance to reach a deal while reminding that the sticking points remain.

As things stand the negotiations are likely to go until the 11th hour with the deadline on 31st December, Boris Johnson though prepared to go the extra mile in hope to get a deal agreed, has told the Britain to prepare for a no deal, and that it is a real possibility.

We expect the tone to continue to change from day to day if not hour to hour, with this the pound is the most vulnerable to potential big gains and losses, until we start to see some clarity, one way or another.

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