Market Overview

Thursday's Market Minute: All Eyes On The British Pound

Thursday's Market Minute: All Eyes On The British Pound

The Sterling is getting a lift again today in reaction to news that U.K. Prime Minister Boris Johnson and European Commission President Jean-Claude Juncker reached an agreement for the U.K.’s departure from the E.U. The British Pound, which has been on the move higher amidst optimism headed into critical Brexit talks this week, traded to new highs for the month on the news to levels we haven’t seen since mid-May. The move was in response to a tweet from the U.K. Prime Minister that read: “We’ve got a great new deal that takes back control.”

However, the Northern Irish Democratic Unionist Party has expressed concerns related to the deal, saying they cannot back the proposal “as things stand.”

Keep an eye on the ripple effect the news is creating – indices spiked higher in reaction, while treasuries and the U.S. Dollar sold off. Keep in mind, many feel the toughest battle has yet to be fought as Boris Johnson now needs to sell his plan to Parliament: the Labour party leader Jeremy Corbyn said the deal “should be rejected” by Parliament.

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