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Agreement reached

Pound recovers as EU divorce bill ‘agreed’

EU Brexit
Investors piled into sterling on speculation of a deal with the EU

Sterling rose last night on speculation that a deal had been done on the Brexit divorce bill.

The pound recovered from a slump inspired by Bank of England governor Mark Carney’s gloomy warning of potential Brexit “pain”.

It was 0.6% up on the euro at €1.12 and also traded higher against the dollar at $1.33.

Analysts have been warning that the pound was in danger of drifting towards parity with the euro after losing 18% of its value against the euro since the EU referendum last year.

It is thought the final UK settlement bill with the EU will be between €45bn and €55bn and if confirmed will help quell market jitters.

The Financial Times has reported the gross liabilities to be more than €100bn, which fall to €55bn to €75bn once the UK’s share of EU assets is taken into account.

Theresa May is believed to have got the agreement of her key cabinet ministers to increase the amount that the UK is willing to pay.

It comes ahead of a meeting between May and the European commission president, Jean-Claude Juncker next Monday when the three crucial Brexit divorce issues will be discussed: the Brexit bill, the Irish border dilemma and the protection of EU citizens’ rights.

 

 



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