Pound hits 5-month high as Brexit deal confirmed

There’s been a sharp move higher in sterling in the past hour after news broke that the UK and EU have reached a new Brexit deal. GBPUSD came within a whisker of trading with a $1.30 handle for the first time since May as trader’s rushed to buy the market. UK banks have also seen their stock surge to the upside with Lloyds shares hitting their highest level in almost 6 months.  However, one note of caution comes with reports that the DUP have not changed their position and therefore we could be back in the same position as we were over 6 months ago where Theresa May’s withdrawal agreement couldn’t pass through parliament. 

With a Saturday sitting expected there could be some large gaps seen over the weekend and the proposition of the opposition tabling an amendment for a confirmatory referendum which would bring remain back to the table has opened up the possibility of an even more positive outcome for the markets.