The pound punched higher against the majority of its peers yesterday, with the currency buoyed by reports Ireland would back the UK’s plans for a post-Brexit customs union with the EU.
Sterling looks to extend these gains this morning, with GBP/EUR climbing to €1.1344, GBP/USD edging up to $1.3048, and GBP/CAD ticking up to C$1.6876, while GBP/AUD and GBP/NZD have both struck post-referendum highs this morning, hitting $1.8498 and NZ$2.0202 respectively.
Today’s session is likely to see the spotlight firmly on the US dollar as markets brace for the release of the latest US payrolls figures.
What’s been happening?
The pound surged higher against most of its peers on Thursday, recouping much of the currencies losses from earlier in the week following reports Ireland would put its support behind Theresa May’s proposal for an all-UK customs union with the EU.
The news emerged as Irish Prime Minister Leo Varadkar met with other EU leaders in Brussel’s yesterday to discuss how to avoid a hard border between the Republic of Ireland and Northern Ireland.
The backing from Dublin was seen as a major step towards the UK solving one of the final puzzles in Brexit negotiations, bolstering Sterling sentiment as it stoked optimism that the UK may still be able to avoid a no-deal Brexit.
This saw the GBP/USD exchange rate surge over half a cent to break back above $1.30 yesterday, with the rebound in the pairing being aided by broad weakness in the US dollar after a run of gains in the US currency was brought to an end by a bout of profit taking.
While the GBP/EUR exchange rate also rose on Thursday, the pound gains against the euro proved far more limited that other Sterling pairings as the single currency was able to exploit the broad weakness in the US dollar.
What’s been happening?
The pound surged higher against most of its peers on Thursday, recouping much of the currencies losses from earlier in the week following reports Ireland would put its support behind Theresa May’s proposal for an all-UK customs union with the EU.
The news emerged as Irish Prime Minister Leo Varadkar met with other EU leaders in Brussel’s yesterday to discuss how to avoid a hard border between the Republic of Ireland and Northern Ireland.
The backing from Dublin was seen as a major step towards the UK solving one of the final puzzles in Brexit negotiations, bolstering Sterling sentiment as it stoked optimism that the UK may still be able to avoid a no-deal Brexit.
This saw the GBP/USD exchange rate surge over half a cent to break back above $1.30 yesterday, with the rebound in the pairing being aided by broad weakness in the US dollar after a run of gains in the US currency was brought to an end by a bout of profit taking.
While the GBP/EUR exchange rate also rose on Thursday, the pound gains against the euro proved far more limited that other Sterling pairings as the single currency was able to exploit the broad weakness in the US dollar.
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