Pound sterling rose sharply on the news from Northern Ireland


Today, the pound sterling against the dollar rose to an area of 2.5-month highs amid the appearance of positive news on Brexit.


The British currency was supported by local media reports that Northern Irish unionists expressed their readiness to support a plan for the UK to secede from the European Union, promoted by the country's Prime Minister Theresa May. At the same time, they put forward a number of conditions regarding the future status of the border with Ireland, which London will still have to coordinate with Brussels.

"This news increases the likelihood that a "tough" Brexit will not happen eventually. If this information is confirmed, the pound rally can continue up to $ 1.32. It is also possible to break through the level of $ 1.38," said CMC Markets analyst Michael McCarthy.

"The market perceives the situation with the extension of Article 50 of the Lisbon Treaty as something almost solved and clings to this idea. However, isn't this attitude too optimistic? After all, it is still impossible to exclude the possibility that Brexit opponents and supporters of the postponement will not be able to draw up a clear plan that would lead to an increase in the chances for the implementation of the "soft" scenario. In this case, there is a reason to believe that the GBP / USD pair rushes to the level of 1.31 before the retreat," said John Hardy of Saxo Bank.

"Next week promises to be very interesting, because we are expecting a vote in the House of Commons on Theresa May's reserve plan on January 29," he added.

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