The British Pound Sterling holds its multi-week recovery as the idea of a transitional Brexit deal that will bridge the country’s move out of the European Union gains traction, PoundSterlingLive reports.
The British Pound rose on the news with the GBP to EUR exchange rate rising to above 1.19.
The GBP to USD exchange rate trades above 1.26 thanks to a stellar day of gains thanks largely to the US Dollar falling back ahead of a much-anticipated US Federal Reserve meeting mid-week.
The move represents a another move away from a so-called hard-Brexit which remains a key consideration for foreign exchange traders when approaching Sterling.
“GBP is sensitive to the distinction between hard vs soft Brexit which boils down to the degree of single market access, including transitional trade arrangements.
This should become clearer through the year, albeit there is little information to handicap the odds of a more or less disruptive economic outcome,” says a note on Sterling’s outlook for 2017 from JP Morgan.
GBP is strong thanks to the latest comments made by senior UK politicians for a transitional Brexit period that would allow for continued market access to the EU’s single market.
