As several sellside desks have summarized, today will be a binary one for GBP: either deal or no deal. And following an early swoon in cable after speculation rose that a deal would be elusive, the pound soared above 1.35 following a report that EU chief brexit negotiator Barnier told MEPs that a breakthrough is likely today.
Authored by Soren Kern via The Gatestone Institute,
Confirming reports from earlier in the week that the EU and UK have agreed on a financial settment for outstanding obligations as well as a formula for calculating the Brexit "divorce" bill, Reuters is out with the following headlines:
The US has filed a legal submission to the WTO as a third party, intervening in a case that China has brought against the European Union. The US rejects China’s argument that under the 2001 agreement, which confirmed China’s WTO status, it would should automatically be considered a “market economy” fifteen years after joining.
Update: That did not last long. Shortly after The Telegraph report hit the wires, AP reports that Brexit talks between the UK and European Union are continuing as officials played down suggestions that a deal has been reached on the so-called divorce bill.
Reports suggested an agreement in principle has been reached which would see Theresa May increase her offer and pay between £40 and £49 billion (45-55 billion euro).