There’s been a sharp move higher in sterling in the past hour after news broke that the UK and EU have reached a new Brexit deal.
GBP/USD came within a whisker of trading with a $1.30 handle for the first time since May as traders rushed to buy the market. UK banks have also seen their stock surge to the upside with Lloyds (LON:LLOY) shares hitting their highest level in almost 6 months. However, one note of caution comes with reports that the DUP have not changed their position and therefore we could be back in the same position as we were over 6 months ago where Theresa May’s withdrawal agreement couldn’t pass through parliament.
With a Saturday sitting expected there could be some large gaps seen over the weekend and the proposition of the opposition tabling an amendment for a confirmatory referendum which would bring remain back to the table has opened up the possibility of an even more positive outcome for the markets.