Sterling swung around five-month highs on Wednesday and stocks in London cut their losses amid a blizzard of contradictory headlines about whether Britain and the European Union were on the verge of agreeing a Brexit deal.
In another volatile day of trading for UK assets, financial markets remained hostage to news as British Prime Minister Boris Johnson and EU negotiators raced against the clock to forge a withdrawal agreement before an EU summit on Thursday.
Negotiators were struggling to clinch an 11th-hour deal, raising the chances that Johnson will have to seek an extension of the Oct. 31 deadline for Britain’s exit from the bloc.
Sterling has surged some 5% since late last week, when London and Brussels restarted intense negotiations. At 15:40 GMT, sterling was up 0.5% at $1.2844, having earlier rallied to $1.2855, a new 5-month high, on optimism that the DUP was coming round to a deal. Against the euro, the pound was 0.2% stronger on the day at 86.160 pence - but off five-month highs hit earlier.
Source : Reuters