INSUBCONTINENT EXCLUSIVE:
LONDON: The pound jumped as a draft accord between the UK and European Union backed a freetrade pact and close cooperation after
Brexit.
Sterling gained more than 1 per cent to a one-week high after the declaration removed some uncertainty about the relationship after
the UK leaves the bloc, its largest trading partner
The statement on futures ties, being negotiated ahead of an EU summit on Sunday to sign off on a Brexit deal, also makes clear that both
Still, the news is not enough to erase doubts about whether the divorce agreement will be approved by lawmakers in the House of Commons
Neil Jones, head of hedge fund currency sales at Mizuho Bank, said investors were taking advantage of the rally and selling sterling as they
remain skeptical of the prospects for the parliamentary vote.
The pound rose as much as 1.2 per cent to $1.2927, its strongest level since
November 15, and was trading at $1.2870 as of 12:18 pm London time
It gained 0.6 per cent to 88.59 pence per euro
UK government bonds fell, with the 10-year yield rising three basis points to 1.42 per cent, while the benchmark FTSE 100 Index dropped 1
Democratic Unionist Party, which she relies on for her parliamentary majority.
