The pound was yesterday’s main gainer as it skyrocketed following comments from EU chief negotiator Michel Barnier that the European Union was ready to offer the UK a close relationship after Brexit. Elsewhere, market sentiment remained supported amid the ongoing NAFTA talks. As for today, focus is likely to fall on the US core PCE index for July and Canada’s GDP for Q2.
Barnier’s Comments Wake GBP-Bulls Up
The pound made a 180-degree turn yesterday and surged against all the other G10 currencies, gaining the most against NZD, AUD and JPY.
The British currency had been on a slide recently due to increasing concerns that the UK could end up leaving the EU without a deal. However, pound bulls woke up yesterday after EU chief Brexit negotiator Michel Barnier said, "We are prepared to offer Britain a partnership such as there never has been with any other third country." Nonetheless, he repeated that “there is no single market a la carte”, which means that the...
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