The pound gave up a lot of gains from Friday as recent rhetoric surrounding Brexit seemed to suggest that a deal was still some way off. However, Sterling did rally back yesterday afternoon and overnight as it seems that progress was made. Last minute compromises have been seen on both sides. Notably, the EU has said that while it thinks a Brexit deal may still be possible at this weeks summit, they could hold an additional emergency summit before the 31st of October to get a deal done.
Holding a Queen’s Speech yesterday, the government said that if it can strike a deal with the EU, it intends to introduce a withdrawal agreement bill and secure its passage through Parliament before the 31st of October deadline. The government also set out ambitious policies on crime, health and the environment.
However, there is no guarantee that the programme would be approved by Parliament. If it isn’t, then this could possibly trigger a general election. Jeremy Corbyn said that the plans laid out by the government were “propaganda” and “fool’s gold.”
UK and EU teams continue to negotiate today, and it’s likely that the pound will continue to be driven by the rhetoric surrounding these talks.
