Britain clinched a last-minute Brexit deal with the EU, but still faces a challenge in getting it approved by UK lawmakers.
British Prime Minister and European Commission president tweeted almost simultaneously that agreement had been reached between the UK and EU on a new withdrawal deal. After that, Johnson headed to Brussels for a two-day summit with EU leaders.
This doesn’t mean Brexit is a done deal. Johnson still faces a knife-edge vote in parliament to get it approved. He hopes to get an approval in a vote at an extraordinary session of the British parliament on Saturday.
The Northern Irish party that Prime Minister Boris Johnson needs to help ratify any agreement has refused to support the deal. The last-minute deal was hammered out over weeks of negotiations.
The British pound has jumped on news of a Brexit deal. Sterling climbed more than 1% to 1.29 against the dollar as the news emerged.
START TRADINGForex – Last-minute Brexit deal ‘agreed’
The U.S. dollar fell against the euro on Thursday. The common currency got a lift from the EU and Britain striking a long-awaited Brexit deal. The dollar has come under pressure this week, shedding about 0.6% against a basket of currencies.
News of the agreement was enough to boost the euro 0.5% against the dollar and 0.66% against the British pound. The development in the Brexit saga marks a welcome respite for the euro which has dropped more than 3% this year.
In less than a week, sterling had managed to gain more than 6% in value against the dollar as hopes of a Brexit deal by the end of Oct. 31 have risen.
The Australian dollar held near the day’s highs, up 1.04% against the dollar. Jobs data showed buoyant hiring, lowering chances of monetary easing in November.
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Sources: Reuters, Investing, CNN money