The British pound sterling-relate ETF fund climbed Thursday after French President Emmanuel Macron said the United Kingdom can leave the European Union with a deal.
The Invesco CurrencyShares British Pound Sterling Trust (NYSEArca: FXB) rose 1.1% on Thursday while the pound strengthened 1.1% to $1.226.
Macron stated that the Withdrawal Agreement could be changed to allow the U.K. to leave the E.U. with a deal in place, PoundSterlingLive reports.
The currency also gained momentum after German Chancellor Angela Merkel suggested that a solution to the Irish border issue could be found before the October 31 Brexit deadline – the Partition of Ireland divided the island into North Ireland, which is part of the United Kingdom, and South Ireland, which is a sovereign state and remains a part of the European Union.
“We can find a solution to the backstop by October 31… we can work on finding a regime that keeps the Good Friday Agreement and also ensures the integrity of the single market,” Merkel said.
Macron’s Approach to Brexit
Macron’s recent comments that the backstop can be reworked is arguably the more important subject of the day as it would be the first time an E.U. leader stepped away from the hardline approach that the Withdrawal Agreement cannot be readjusted.
“It is just what Michel Barnier has negotiated can be amended while complying with the integrity of the single market and the two goals I mentioned, then we can find a solution,” Macron said.
“We should all together be able to find something smart within 30 days on both sides if there is goodwill on both sides and I believe there is,” he added.
The clearer picture of how a Brexit can go through has helped alleviate some of the uncertainty surrounding British assets.
“Sterling continued to find buyers on the dip. Traders appeared to be comforted by the positive tone in today’s joint press conference from both UK PM Johnson and French President Macron regarding Brexit,” Erik Bregar, Director, Head of FX Strategy at Exchange Bank of Canada, told PoundSterlingLive.
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