Sterling Gains Capped

GBP

Sterling had a mixed day on Friday as it opened the session at multi-month highs against the EUR and USD, but closed lower due to ongoing Brexit uncertainty.

The initial rise in Sterling was due to European Commission President, Jean-Claude Juncker, stating that a Brexit deal was still possible.

Juncker stated in an interview that the EU are willing to “have a deal” and that he doesn’t have an “emotional relationship to the backstop.” Juncker added that “if the objectives are met – all of them – we don’t need the backstop.”

However, Sterling gains were short lived as Ireland’s Deputy Prime Minister cooled expectations that a Brexit deal was close. Simon Coveney told local media outlets on Friday that whilst the “mood music had improved,” a “dose of reality” was needed as a Brexit deal was not imminent and a “large gap remained.”

Despite the downbeat comments from Coveney, the UK’s Chief Brexit Negotiator, Stephen Barclay, struck a more optimistic tone stating that he believes a Brexit deal with the EU is still possible.

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