EU’s Tusk: Brexit deal has been endorsed by EU leaders

GBP/USD has rallied to the highest level since May earlier this year on Brexit deal.
EU’s Tusk has said that a Brexit deal has been endorsed by EU leaders.

Ross J Burland FXStreet

In a press conference, EU’s Tusk has said that a Brexit deal has been endorsed by EU leaders.

Nearing the ‘final stretch’.
Deal was possible because Ireland has positive assessment of new deal.
Key change was UK pm’s acceptance to have customs checks at N./Ireland entry point.
Deal ensures single market’s integrity.
Deal can take effect from 1st November.
'Door will always be open’ if UK decides to return one day.
Waiting on UK, EU parliaments to vote on deal.
If Brexit deal was rejected and extension was requested, would consult EU leaders.
Ball is now in UK’s court.

The press conference followed a decision by Leaders of 27 EU countries to formally endorse the new Brexit agreement with the UK.

FX implications:

The prime minister now faces a battle to get the deal through Parliament on Saturday. The stumbling block will be with the DUP opposing it. DUP deputy leader Nigel Dodds has already voiced his frustrations with PM Johnson, saying that he is "too eager by far to get a deal at any cost". European Council President Donald Tusk did not rule out an extension to the Brexit deadline if MPs rejected it. This all means that GBP is not out of the woods yet. GBP/USD has rallied to the highest level since May earlier this year, breaking towards the 1.30 handle for a high of 1.2989 so far on the day.

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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