Pound in biggest rally since EU referendum; Trump boosts trade deal hopes– business live | Business

“Sterling has reached a three month high against the US dollar, extending yesterday’s rally, which at 2% against the US dollar was impressive in its own right.

“There’s nothing complicated about the sterling rally we’ve seen over the past two days: no deal risk has fallen, and the pound has rallied accordingly. From our perspective there are two key takeaways from this week’s price action; firstly that marginal changes in no-deal risk still have a dramatic effect on sterling and secondly, that at this point the market’s estimation of no-deal risk is actually very low. Therefore, if talks collapse the sterling reaction will be seismic.

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