Brexit: Sterling Surges Against Dollar On Renewed Hopes Of Deal

The pound sterling rose on Friday to a three-month high amid investor optimism about a possible last-minute Brexit deal.

On Friday, EU Brexit negotiator Michel Barnier said he had had a “constructive” meeting with his British counterpart, Stephen Barclay, after which they released a joint statement that spoke of “a pathway to a possible.”

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This development has triggered hopes for a possible Brexit deal and investors are beginning to have more confidence in the British market. 

Consequently, the dollar fell against the pound by 2% to $1.2685, and against the euro which was up 1.4% at 87.2p.

Following recent trend, the pound sterling bounced back to more than 3% since Thursday which is its biggest two-day gain prior to June 2016 referendum on leaving the EU.

BBC quoted analysts as pointing out that the amount of trading was thin, leading to higher changes, while another said “the price surges were probably due to algorithms driving the market”.

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Further reports have it that there were hopes that a meeting between British and EU negotiators will pave the way for a Brexit transition deal at a summit on October 17-18.

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