Theresa May will update on the progression of Brexit talks ahead of the keenly-anticipated EU conference due mid-month. Prime Minister Theresa May and European Commission President Jean-Claude Juncker have confirmed an agreement on moving Brexit talks forward has not been reached, despite earlier suggestions the two sides were close to agreement.
The Pound rose on earlier hopes that all issues - particularly the issue of the Irish border - had been solved.
However, when news broke that no deal had in fact been reached, the currency fell back. But, the Pound subsequently recovered on confirmation from Juncker in his appearance before the press that a deal is very likely soon. Juncker told reporters that May is "a tough negotiator" and is "defending Britain with all the energy she has. We are narrowing our positions "thanks to the British Prime Minister" says Juncker, adding "I am still confident we can reach agreement before the E.
These constructive words from one of the U. K's toughest critics will have soothed trader nerves and allowed Sterling to ultimately remain supported. It has been a day characterised by fevered debate over the future of the Irish land border with the Pound rallying on leaks suggesting Northern Ireland would maintain some form of regularly compliance with the E.
This appears to have been proof the U. The action of Sterling reminds traders why it is dangerous to trade leaks and rumours as an apparent telephone call between May and D. P leader Arelene Foster during May's lunch with Juncker appears to have sunk any deal. Hearing it was the DUP call that sunk today's chances of a deal - Foster held her press conf, 20 mins later May leaves talks with Juncker to call her, goes back into the room and the deal is off.
P's response suggests they might not have been privvy to an initial agreement struck betweek the Irish and U. Either way, news that no agreement has been reached has taken the wind out of Sterling's sails and the currency has retraced recent gains, however expect losses to be shallow in anticipation of that final breakthrough.
It looks like there will be a deal, but just not yet. This is exactly how the eurozone crisis played out, so we can expect some surprises along the way before the agreement is sorted," says Chris Beauchamp, Chief Market Analyst at IG. The Pound endured a volatile day of trade against the Euro but ultimately ended the London session higher than where it started. The British Pound advanced from a soggy start in late morning trade in London on reports the U. We stressed at the time the reports had not been confirmed and Northern Ireland's D.
The leaks were nevertheless snapped up by currency markets who are trading Sterling according to perceived progress in Brexit negotiations. The leaks suggested the sticking point that is the Irish border had been cleared and would therefore allow the U. The news came ahead of crucial talks between the U. Prime Minister Theresa May and European Commission President Jean-Claude Juncker, the pair met over lunch which dragged on for hours, a sign that some changing in position was underway.
News of progress on Brexit negotiations in late November propelled Pound Sterling higher, earning it the status of November's best performer. More signs of such progress will be required if December is to yield further gains for the currency.
T, a development that added another dimension on the day's proceedings. According to a European Commission press contact, Tusk had cancelled a trip to the Middle East this week "due to a critical moment in the Brexit talks and due to consultations on draft guidelines for the second phase of talks.
To us that sounded like a breakthrough and commencement of trade talks was imminent; which was good for Sterling. A confirmed deal would see traders back up their bids and is therefore seen as being extremely positive for sterling.
Recall there is disagreement over the role of the ECJ with regards to the rights of European citizens in the U. C European Commission The Pound has jumped between gains and losses this afternoon on confirmation the U. Hearing it was the DUP call that sunk today's chances of a deal - Foster held her press conf, 20 mins later May leaves talks with Juncker to call her, goes back into the room and the deal is off — Laura Kuenssberg bbclaurak December 4, The D.
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