Brexit breakthrough pushes pound to six-month high against the euro
London — A breakthrough in Brexit negotiations pushed sterling to a six-month high against the euro on Friday and added momentum to an upswing in world stocks, underpinned by strong economic news from China and Japan. Britain and the EU struck a deal on Friday to move on to talk about trade and a transition period after they agreed the outline of their divorce. Sterling was up nearly 0.5% against the euro to hit a six-month high, and stock indices across the continent opened sharply up on the news. "While agreeing a divorce bill has little economic significance for the price of sterling, the political significance of progress in Brexit talks is quite profound," said Viraj Patel, an FX strategist for ING. "It reduces the tail risk of a ‘no deal’ scenario and a complete breakdown in negotiations." Even Britain’s FTSE 100 Index, which normally falls when sterling rises because of high number of dollar earners on the list, edged higher. But it lagged behind the pan-European share index,...
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