Pound dollar exchange rate: GBP surges after Barnier comments

The EU’s chief Brexit
negotiator Michel Barnier.
REUTERS/Francois Walschaerts

LONDON — The
pound surged higher on Monday afternoon after conciliatory
comments from the EU’s chief Brexit negotiator Michel Barnier.

Speaking at a conference in Slovenia on Monday afternoon, Barnier
said that a Brexit deal could be between six and eight weeks,
calling such an outcome both “realistic” and “possible.”

Barnier’s words were welcomed by investors in the pound, which
jumped to a gain of just over 1% against the dollar to hit a peak
of $1.3052. A few minutes after the initial increase, the pound
has pared some of its gains and is trading 0.87% higher at
$1.3032 as of 2.25 p.m. BST (9.25 a.m. ET).

Markets Insider

In recent weeks, the pound has been extremely sensitive to
positive developments surrounding Brexit. Last Wednesday, the
pound
jumped sharply against the dollar after
a report suggested Germany had agreed to a significant compromise
with the UK during Brexit talks.

On that occasion, the pound climbed close to 1% when Bloomberg
reported that German officials were prepared to “accept a less
detailed agreement on the UK’s future economic and trade ties
with the EU in a bid to get a Brexit deal done.” It soon dropped
after an official statement from the German government saying its
position had not changed.