We have seen the Pound strengthen over the course of last night pushing GBP/EUR and GBP/USD into the mid 1.13’s and mid 1.25’s respectively. The move has come after the European Commission President Jean-Claude Juncker said a new Brexit deal could still be reached before the 31 October deadline.
Prime Minister Boris Johnson said he did not want to “exaggerate progress” but some was being made. However, Ireland’s foreign minister, Simon Coveney, said there was still a “big gap” between the two sides.
Brexit Secretary Stephen Barclay is to hold talks with the EU’s negotiator Michel Barnier later today. A positive outcome from this meeting could benefit the Pound further.
Ahead of the meeting in Brussels, Mr Barclay warned the EU against a “rigid” approach and suggested the final details of an alternative to the Irish backstop may not need to be resolved until the end of 2020.