Sterling soared higher on Monday afternoon amid optimism that Brexit talks will break the current deadlock and move onto topics like a future trade deal between the two sides.
At around midday, the pound hit a day’s high of 1.3523 against the dollar after news emerged that Westminster will concede on EU trade rules for Northern Ireland. The U.K. has reportedly accepted there will be “no regulatory divergence” of EU customs union and single market rules for Ireland after Brexit, according to RTE.
The concession has yet to be accepted by the Irish government.
The pound sterling’s key risk today has been U.K. Prime Minister Theresa May’s meetings with European Commission President Juncker and Donald Tusk in Brussels, as she presents proposals for the U.K.’s contentious financial settlement with the EU and the complex issue of the Irish border.
Sterling spikes on news of UK-Ireland trade breakthrough