Yesterday, both the pound and the euro came under strong buying interest. The pound strengthened following reports that the EU and the UK have agreed on a post-Brexit Transition period, while the common currency regained some of its recently lost glamour after ECB sources suggested that the Bank is shifting its debate from QE to the pace of interest rate increases.
Sterling Surges on Transition Period Deal; UK CPIs on Investors’ Radar
The British pound managed to outperform all the other G10 currencies on Monday. The main losers were JPY, USD, and AUD in that order, while the currencies that underperformed the least were EUR and SEK.
Yesterday, the EU and the UK agreed to a transition period until the end of 2020. The pound started to surge well ahead of the official announcement, following reports that EU Brexit negotiators called for an urgent meeting, where they could agree on the matter.
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