GBP: Frther Signs Of Compromise On Brexit; Scope For GBP To Regain Ground – MUFG

The British pound jumped above 1.3000 after Barnier said that reaching a deal is realistic within 6-8 weeks.

Here is their view, courtesy of eFXdata:

MUFG Research discusses GBP outlook and notes that the pound has been one the best performing G10 currencies so far this month driven by a modest pullback in Brexit risk.

“There has been another encouraging report in today’s FT entitled “EU ready to give Barnier mandate to close Brexit deal”…

The developments support our view that a “No Deal” outcome remains unlikely. We see scope for the pound to strengthen further as the current Brexit risk premium is pared back,” MUFG argues.

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