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Pound LIVE: GBP Sterling SMASHES through euro barrier on Brexit optimism


Theresa May’s Conservative party is understood to be hoping a conclusion may be reached towards the middle of next week, with reports of this sparking a boost in Sterling. De facto deputy Prime Minister David Lidington told Cabinet that talks on Monday were “serious and constructive”. Mrs May’s official spokesman said: “Further talks will now be scheduled in order to bring the process toward a conclusion.” As of 9.10am UK time, the pound is trading at €1.1629 and $1.3058.

Yesterday afternoon marked the first time Sterling had smashed through the €1.160-barrier against the euro since April 10.

Today will see Mrs May and Labour leader Jeremy Corbyn clash in the Commons for the latest round of Prime Minster’s Questions.

Both leaders are currently under growing pressure from their own parties on Brexit.

Mr Corbyn has seen off an attempt to commit Labour to a confirmatory referendum on any Brexit deal, angering some on the Remain wing of the party.

While some Eurosceptic ministers are said to be unhappy with the cross-party talks taking place with Labour, fearing Mrs May may give in to Opposition demands on Brexit.

There have been warnings the Conservatives will lose seats in the local elections being held on Thursday with one respected analyst predicting that more than 800 Tory councillors will lose their seats.

Connor Campbell, analyst at Spreadex, said: “The pound added 0.1 percent against the dollar and the euro, just about pushing cable to a two-week peak of $1.305.

“That trading landscape could shift, however, dependant on the state the latest manufacturing PMI, which is forecast to dip from 55.1 to 53.2 month-on-month.”

Sterling could be moved this week after the Bank of England meet this Thursday lunchtime.

The BoE is anticipated to keep interest rates the same this week, with analysts suggesting Brexit uncertainty will keep rates on hold until a breakthrough emerges.

This week will also see local elections take place and the release of PMIs for April.

The Manufacturing PMI is out on Wednesday, followed by the Construction PMI on Thursday.

Mr Brown continued: “Markets will look to the monthly PMI surveys for an early gauge of the UK economy’s performance last month, with a modest rebound expected in the services sector while the manufacturing index is likely to fall as the impact of Brexit stockpiling dissipates.

“Thursday’s Bank of England meeting is also on the radar, where focus will fall on the BoE’s latest economic forecasts, with the possibility of a hawkish tilt – with the BoE likely unable to ignore the tightness of the labour market.

“A positive-sounding BoE along with upside surprises to economic data would likely see the pound well-supported throughout the week, though Brexit headlines may derail any rally.”



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