EUR/GBP: GBP got a boost on soft Brexit optimism

  • GBP boosted by hopes of a soft Brexit.
  • EU may soften their stance on Brexit terms.

EUR/GBP is trading down 0.2% at around 0.887 in New York Session on reports of EU’s softening Brexit stance. This report came amid ongoing Brexit saga as the UK PM Theresa May is reportedly facing a crisis related to the Brexit border deal after Northern Ireland, power-sharing discussions were said to have collapsed.

Separately there was a report that the EU will demand the right to raid financial services firms in Britain after Brexit and hand its regulators sweeping new powers, as Brussels moves to shackle the City of London with red tape after the UK leaves the EU.

Finally, in some good news, there is an unconfirmed report that EU diplomats have removed a so-called "punishment clause" from a draft text of the arrangement for the Brexit transition period. Another report also suggests that the European Union is looking to ease Brexit transition conditions.

The UK Prime Minister Theresa May will meet German Chancellor Angela Merkel in Berlin this Friday to discuss positions ahead of Brexit negotiations.

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