Pound Rises After Merkel Says EU Has Made ‘Very Important’ Offer

(Bloomberg) -- The pound rallied after German Chancellor Angela Merkel said that European Union President Jean-Claude Juncker had made a “very important” offer to the U.K. on Brexit.

Sterling was on course to snap seven days of declines, its longest losing streak since August, following the sign of a concession from the European side ahead of a U.K. Parliament vote on the Brexit deal Tuesday. Facing defeat by lawmakers, Prime Minister Theresa May is said to be considering all options including an aspirational motion setting out a deal they would be prepared to support.

Pound Rises After Merkel Says EU Has Made ‘Very Important’ Offer

“The pound is up sharply as it appears Juncker has made an important offer to the U.K.,” said Neil Jones, head of foreign-exchange sales at Mizuho Bank. “It could help May to get enough support, but she does not have time at the moment.”

Sterling climbed 0.5 percent to $1.3074 as of 2:25 p.m. in London, after touching a high of $1.3097. Sterling had earlier fallen to $1.2949, the lowest level in three weeks, amid reports that May could pull Tuesday’s vote.

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