Pound jumps on Brexit hopes

Agence France-Presse . London | Published: 00:00, Sep 14,2019

 
 

The British pound hit a seven-week high against the dollar Friday on easing fears of a no-deal Brexit.

Stock markets meanwhile won support after China said some US agricultural products including pork and soya beans would be exempt from added tariffs, ahead of trade talks between Beijing and Washington scheduled for October.

The announcement is the latest in a series of appeasement measures between the world’s two biggest economies, who for the past year have been locked in a bitter trade war resulting in tit-for-tat tariffs on hundreds of billions of dollars in bilateral trade.

In foreign exchange, the pound was in focus after the UK currency jumped one per cent to $1.2476, the highest level since late July.

Sterling won strong ground also versus the euro, which had been gaining on European Central Bank plans to stimulate the struggling eurozone economy.

The pound ‘has rallied... as traders are less fearful about the possibility of a no-deal Brexit’, noted David Madden, analyst at CMC Markets UK.

It comes after Britain’s parliamentary speaker warned Prime Minister Boris Johnson not to disobey the law by refusing to ask for a Brexit delay and vowed to thwart any attempt to circumvent legislation.

Parliament passed a law earlier this month aimed at preventing a no-deal Brexit, but Johnson is adamant Britain will still leave the EU on schedule on October 31 with or without a withdrawal agreement.

The speaker of Britain’s House of Commons John Bercow said disobeying the law ‘would be the most terrible example to set to the rest of society’, according to Britain’s Press Association news agency.

In a speech in London on Thursday, Bercow warned if the government comes close to doing so, parliament ‘would want to cut off such a possibility and do so forcefully’.

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