The Pound Sterling edged higher during London trade, finding support on news that there is now some advancement on the issue of the Irish border. Insiders say that that obstacle will hopefully be resolved by diplomats at this week's European Union summit. There have been behind-the-scenes advances working cohesively to settle this problem and The Times reported that Michel Barnier, the chief negotiator for the EU, is attempting to craft a plan that would keep physical border checks to a minimum by employing the use of shipping container bar codes to track goods passing between the two Irelands.
As reported at 11:21 am (BST) in London, the GBP/USD was trading higher at $1.31, a gain of 0.21% and just a few pips off the session peak of $1.3104; the pair's low is recorded at $1.3067 for this session. The EUR/GBP is trading at 0.89008 Pence, up 0.07%; the pair has ranged from 0.88837 Pence to 0.89040 Pence in today's trading session.
Outlook for Brexit Still Uncertain
Analysts are encouraged by the comments ahead of this week's summit, the first of three in the upcoming weeks. Many believe that a deal for a soft Brexit could be struck before December; Britain is due to leave the EU at the end of March 2019. What is hoped is that the EU will be willing to be more flexible in the negotiations, which will go a long way to lifting optimism and providing additional support for the Pound. Some critics point out that the British government's continued in-fighting may continue to pose a problem for a smooth transition.