Sterling rebounds strongly as Bloomberg reports that both Germany and UK have dropped key Brexit demands, citing unnamed source. Additionally, there are signs of progress on the key sticky issue of Irish border.
In short, Germany is said to accept a less detailed agreement regarding the future relationship. Meanwhile, UK is also prepared to accept a more vague statement of intent on the relationship too.
Most importantly, EU’s chief Brexit negotiator Michel Barnier has openly said he strong opposed to the Chequer’s plan. That’s the trigger for Sterling’s selloff this week. But Bloomberg’s source said that such opposition isn’t necessarily an obstacle for the agreement.
That could finally ease the path to a Brexit deal to be concluded in October, or may be later in November.
