Pound Rallies on Brexit Development; Dollar Pares Gains
- EU negotiator may offer U.K. transition period with union
- Dollar gains fade amid focus on inflation trends, Nafta
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The dollar was nursing a small gain as the pound hogged the spotlight, roiled by wide swings in response to Brexit developments.
The pound shot to a session high, gaining as much as 0.5 percent versus the dollar, after German paper Handelsblatt reported that chief EU negotiator Michel Barnier may offer the U.K. a two-year transition period to stay in the union. The pound’s surge reversed steep losses that followed a report that Brexit negotiations had stalled. Meanwhile, the dollar pared its first gain in five days later in the session as Treasuries rose to fresh highs; the Bloomberg Dollar Spot Index was up less than 0.1 percent.