Forex News: Pound Rallies On Brexit Deal Optimism

Pound Rallies On Brexit Deal Optimism

(RTTNews) - The pound was higher against its major counterparts in the New York session on Tuesday, as traders cheered new U.K.-European Union deal on Northern Ireland.

U.K. Prime Minister Rishi Sunak and European Commission President Ursula von der Leyen signed the new deal, called the "Windsor Framework, on Monday to solve problems caused by the Northern Ireland Protocol.

Under the deal, goods from Britain will be allowed to enter Northern Ireland freely.

It also changed parts of the existing protocol by allowing the UK government to determine some of VAT rates applicable in Northern Ireland.

Sunak described it as a "decisive breakthrough" and said it would protect Northern Ireland's place in the U.K.

The pound climbed to a 1-week high of 1.2137 against the greenback and a 4-week high of 1.1358 against the franc, from its prior lows of 1.2026 and 1.1265, respectively. The currency is seen facing resistance around 1.24 against the greenback and 1.22 against the franc.

The pound firmed to a fresh 4-week high of 0.8760 against the euro and more than a 2-month high of 166.00 against the yen, from its early lows of 0.8811 and 164.02, respectively. Next key resistance for the currency is seen around 0.86 against the euro and 169.00 against the yen.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2023 RTTNews.com. All Rights Reserved

Market News provided by RTTNews