The pound is in a strong position against the dollar and slightly weaker against the euro this morning, as markets await Brexit news in the run up to the EU summit on Thursday. There have been reports that a Brexit deal could be signed early next week, suggesting that David Frost has told Johnson a “possible landing zone” could be ready by Tuesday.
However, other reports suggest that talks could run right down to the wire and continue into December. This scenario could spell volatility for the pound. European Commission President, Ursula von der Leyen, said she is more interested in the “quality” of the deal than the “craziness” of deadlines.
Bank of England Governor, Andrew Bailey, will make a speech later today, which will be watched closely by the markets.
