Currency, Rates Traders See a Glimmer of Hope in Brexit Talks
- Inflation breakeven rates, EUR/GBP decline amid ongoing talks
- Bond moves reflect optimism about the outcome of negotiations
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Traders appear less worried about crunch Brexit talks than in the past, and are positioning for an amicable outcome between the United Kingdom and the European Union.
Falling breakeven rates, cheaper gilts and a rebound in the pound against the euro all reflect market optimism that -- despite recent bluster -- the two sides will clinch a deal at the eleventh hour, as has often been the case since the U.K. voted to leave in the 2016 referendum.