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BRITAIN-EU-POLITICS-FOREX-STERLING
Sterling rebounds as Brexit trade talks extended
LONDON, Dec 14, 2020 (BSS/AFP) – Sterling rebounded against the dollar on Monday as dealers eyed fresh hopes of a Brexit trade deal after Brussels and London decided to extend negotiations.
At about 0740 GMT, the pound gained 1.2 percent versus the greenback to $1.3380 and added 0.8 percent against the euro.
The British pound tumbled last week as fears intensified over a no-deal Brexit.
However, Britain and the European Union agreed Sunday to extend talks on a post-Brexit trade deal past a self-imposed deadline.
Prime Minister Boris Johnson and EU chief Ursula von der Leyen said after a crisis call that they would “go the extra mile” to find common ground in long-running talks.
“Currency traders feel much better as the Brexit deadline has been extended again while the topsy curvy trade talks continue between the UK and the EU,” said AvaTrade analyst Naeem Aslam.
“The fact is that lawmakers have given the Brexit talks another chance, traders are hoping that Boris Johnson and Ursula von der Leyen will both reach a deal at the last minute.”
In equities, London’s benchmark FTSE 100 stocks index turned flat at the open.
And in the eurozone, Frankfurt’s DAX 30 index won 0.9 percent and the Paris CAC 40 added 0.8 percent.
BSS/AFP/MSY/1439 hrs