Thursday , May 23 2019

Pound rallies as market grabs sign Brexit is reversible


The pound rallied after an adviser to the European Union’s top court suggested that the UK should be allowed to reverse its notice to leave the bloc.
Sterling snapped three days of losses following the non-binding opinion from Advocate General Manuel Campos Sanchez-Bordona of the EU Court of Justice, who said
“the possibility continues to exist” to revoke the Article 50 notice until the UK’s withdrawal agreement is concluded.
“The pound is really taking the Article 50 news well,” said Jordan Rochester, an analyst at Nomura International. “Sterling had been trading on the soft side due to concerns about the vote and how Labour plan to table a vote of no confidence if or when it falls through. This doesn’t change that, but the market had gotten overly short.”
Sterling gained 0.7 percent to $1.2818 in London, and strengthened 0.3 percent to 89.00 pence per euro. The yield on UK 10-year government bonds fell one basis point to 1.30 percent.

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