The pound jumps to highest level since July as no-deal Brexit worries fade

The pound jumps as no-deal Brexit worries fade

  • Sterling gains ground, possibly for the short term
  • Pound jumps to highest level since July
  • The possibility of positive Brexit Negotiations
  • Notable shift from EU on Brexit view

Yesterday, the pound rallied to its highest level since July 2019. The rise came after a report that Jean-Claude Juncker, the European Commission President, hopes a Brexit deal could be reached by October 31st.

Juncker stated that he’s doing “everything” to prevent a no-deal Brexit before the impending deadline. Juncker’s remarks came after Irish Prime Minister Leo Varadkar agreed to meet Boris Johnson in New York next week to agree a deal on the Irish backstop.

Positive Brexit negotiations

Negotiations have been stagnant for months as the October deadline looms over the U.K. However, with decisive talk of a Brexit deal being achieved and positive sentiments from both Varadkar and Juncker, the future is looking a lot brighter.

The pound rose by 0.7% to £1.25702 against the dollar, the highest it’s been since the 15th of July. The below charts, from the BBC, demonstrate Sterling’s growth against the Euro, the US Dollar and the Japanese Yen.

GBP/USD

GBP to USD BBC

GBP/EURO

GBP to Euro BBC

GBP/JPY

GBP to JPY BBC

An opportunity for overseas investors 

If a Brexit deal is achieved by the 31st, it’s likely that the pound will recover its losses. Whilst Brexit uncertainty has affected some markets in the UK, it certainly hasn’t dampened the Manchester property market which has been continuing to blossom throughout Brexit negotiations.

If you are looking to invest in a property in Manchester, the UK’s buy-to-let hotspot, get in touch today and we will introduce you to our latest developments.

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