The breakthrough in the recent Brexit negotiations has seen the value of the pound rise, as it is confirmed by the EU that a deal will be found for the UK.
Michel Barnier, the chief negotiator for the EU, has hinted that the UK will be able to strike a deal on its exit from the EU. He has confirmed that a unique deal is achievable, and these comments have seen the value of the pound rise against both the Euro and the Dollar almost immediately. It has been floundering against both currencies ever since the referendum result was announced.
EU partnership with UK
Mr Barnier stated that the EU could create a unique partnership with Britain. Previously, he was insisting that the model used for deals with Norway and Canada should be used. The UK emphasised that these deals were not acceptable and is determined to find a different solution.
However, he has confirmed that the UK will not be able to take its pick of benefits from the single market. The news of a deal has been welcomed, but most Brexit supporters are keen to hear the details of a new offer. They are also clear that the UK is a huge market for many European products such as German cars, and that this gives the UK a great deal of leverage when negotiating an exit deal.
The Brexit Secretary, Dominic Raab has stated that there is a possibility that the deal will not be finalised before the deadline that has been agreed for October. However, he has confirmed that much of the agreement has been fleshed out, and he estimates that it is now around 80% complete. Despite the positive noises from the UK side, it was the welcome comment from the EU that led to the pound soaring in value again.