The sterling was under pressure last week as conflicting statements on Brexit negotiations were being released to the press by German and British officials.
However, the British pound jumped dramatically against the U.S. dollar today following statements from EU's top Brexit negotiator, Michel Barnier.
Speaking at conference in Slovenia, Barnier said:
"I think that if we are realistic we are able to reach an agreement on the first stage of this negotiation which is the Brexit treaty within six or eight weeks."Forex speculators piled into the pound immediately after Barnier’s comments, pushing the GBP/USD exchange rate to its highest level since the beginning of August:
At the peak of the frenzied rally, the pound was trading at 1.3052, which translates to a daily gain of more than 1%.
But buying pressure eased up towards the end of the trading day, and the the pound finished on Monday with a gain of 0.85% against the dollar.
Sterling photo credit: 1
