Pound bounces higher after reports that PM might postpone Brexit and possibly rule out a no-deal
The Pound has moved higher overnight after reports that Theresa May will potentially delay the Brexit deadline and possibly formally rule out a no-deal Brexit. Further support came from news that Jeremy Corbyn is ready to support a second referendum should his proposed solution not get the support it needs in tomorrow’s voting session.
A no-deal Brexit is the biggest risk that Sterling currently faces. If the above reports are valid, then the odds of a no-deal Brexit will be heavily slashed making Sterling more attractive. Theresa May is due to make a statement this afternoon (around 2-3pm), so we shall see if this is her next move or not.
As a result, the GBP/EUR and GBP/USD have both moved to 4-week highs. We will keep you informed of any other major developments.