Skip to content
Subscriber Only

Pound Falls as Headlines Seen Tempering Brexit Good News

  • EU official says trade deal by March 2019 not realistic
  • Reaction suggests investors got carried away buying: Marinov
Video player cover image

RBC's Lignos Says Many Brexit Questions Remain for Pound

Updated on

The pound weakened and U.K. government bonds stayed lower as a European Union official said it was not realistic to expect a U.K. trade deal in March 2019, following a Brexit breakthrough earlier Friday as the two sides agreed to move talks on to the next stage.

Sterling reversed an earlier advance, while gilts headed for their first weekly decline in four weeks, even as the same official said talks on the transition period could start in early 2018. The U.K. currency has swung between gains and losses this week as Brexit headlines drove near-term direction. One-week implied volatility on pound-dollar, which captures a key EU summit scheduled for Dec. 14-15, rose to its highest level since June.