BREXIT MARKET ROUND-UP: What happened on the day deal was agreed?
Lawmakers will vote on Boris Johnson’s Brexit deal this Saturday and if not passed Johnson will be forced to ask for a Brexit delay beyond October 31
The pound came within touching distance of $1.30 ($1.2990) for the first time since May after the UK and EU declared that a Brexit deal has been reached.
The FTSE 100 closed at 7,182.32, jumping 0.20 per cent. UK Gilts, German Bunds, gold and most other safe havens also rebounded after selling off, Reuters reported.
However, the pound began to lose ground (falling back below $1.28) by early afternoon after Northern Ireland’s Democratic Unionist Party said it will vote against the Brexit proposals, leading to further uncertainty on whether Boris Johnson’s deal will pass Parliament.
There was a similar pattern against the euro. At first the pound jumped above €1.16, before falling back to stand at €1.1525.
Though the deal remains to be approved by British lawmakers, traders briefly sent sterling and the euro up by more than 1pc and 0.5pc respectively.
The euro has fallen more than 3pc so far this year, but hopes of a Brexit deal this week has dragged the euro out of a downward spiral and pushed it above $1.11 for the first time in a month.
European stocks increased all round. Germany’s DAX rallied 0.5pc while Ireland’s gained 0.3pc.
Mr Johnson has said his Government respects the law but that Britain will leave the EU on October 31 no matter what.