The pound saw a slight strengthening as EU leaders agreed to a flexible Brexit extension until 31st October, emerging at 1:00am to announce the decision to the waiting media. The extension is longer than the Prime Minister’s hoped-for deadline of 30th June, but still falls short of Donald Tusk’s intended 12 months. Tusk told the press, “…it’s still enough time to find the best possible solution. Please do not waste this time.”
Meanwhile, cross-party talks continue, and both sides seem positive about the result. However, worries remain that a longer extension will help to kill of some of the impetus surrounding the negotiations.
Earlier yesterday, the pound was buoyed by better-than-hoped economic releases. Exports rose 0.1% and balance of trade decreased from £-5.35 billion to £-4.86 billion, the first decrease since September 2018.
