Pound sterling rise on report of a tentative financial services agreement with the EU

(qlmbusinessnews.com via news.sky.com– Thur 1st Nov, 2018) London, Uk – –

Negotiators have reached a tentative agreement on all aspects of a future partnership on services, The Times says.

The pound rose against the dollar after The Times reported Prime Minister Theresa May had struck a tentative deal with the European Union on financial services.

British and European negotiators have reached an agreement on all aspects of a future partnership on services, the paper said.

The deal gives UK financial services companies continued access to European markets after Britain leaves the EU, as long as British financial regulations remain broadly aligned with Brussels.

The pound, which has lost 3.6% versus the dollar over the last three weeks amid concerns of a disorderly Brexit, jumped 0.62% to $1.2843.

With Britain leaving the EU in March, many international banks based in the UK have shifted operations and jobs to the continent so that they can continue to service clients.

In a sign that a wider deal was close to being concluded, Brexit Secretary Dominic Raab has revealed he expects to have a Brexit divorce deal confirmed with Brussels by 21 November.

The Brexit secretary announced the date in a letter to senior MPs who had summoned him to appear before a committee.

A government source confirmed to Sky News they were hoping for a political agreement by 21 November, with all EU leaders meeting in mid-December to sign it off.