Newsflash: Pound surges to 3-week high, Merkel confident backstop solution can be found

Currencies Direct August 22nd 2019 - < 1 minute read

The pound shot higher on Thursday, breaking through key resistance levels against both the euro and US dollar on hopes the UK and EU may still be able to reach a Brexit deal by October 31st.

Key rate movements

  • GBP/EUR up almost 1%
  • GBP/USD at three-week high.

UK PM Boris Johnson has been in Europe this week, speaking with German Chancellor Angela Merkel and French President Emmanuel Macron in an effort to persuade them to ditch the controversial Irish backstop.

While neither leader was willing to give in to Johnson’s demand for the backstop to be scrapped, they both agreed to give the UK 30 days to provide ‘visibility’ on an alternative solution.

Brexit – What have EU leaders said this week?

  • Angela Merkel – ‘I said that what one can achieve in three or two years can also be achieved in 30 days. Better said, one must say that one can also achieve it by October 31.’
  • Emmanuel Macron – ‘We should all together be able to find something smart within 30 days if there is goodwill on both sides.’
  • Boris Johnson – ‘I think we can get a deal and a good deal. I know that with energy and creativity and application we can find a way forward for all our businesses and our citizens.’

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