Fundamental Comment

Pound rallies to $1.30 after Barnier’s upbeat remarks

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The pound rallied above $1.30 after European Union chief negotiator Michel Barnier said a Brexit deal was possible within six to eight weeks.

Barnier comments eased concerns of a no-Brexit deal, thereby lifting the pound above the critical level of $1.30, where it is currently hovering around $1.3040.

Recently, the pound has been very sensitive to any comments concerning an EU-Britain Brexit deal, especially Barnier’s remarks.

The pound soared earlier in the session after upbeat U.K. GDP data showing the economy grew at the fastest pace in nearly a year in the quarter through July.

Also, key reports released today showed construction output marked the biggest rise since last December in July and the U.K. overall trade in goods deficit was the smallest since February.

After falling to a low of $1.26 on August 12, the lowest level since mid-June 2017, the pound has rebounded on some optimism of Brexit deal and improvement in U.K. data.

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