Pound Sterling (GBP)

GBP/EUR - Today's data summary

% change
-0.23%
Price Euros
1.1561
Change
-0.0030
As of 11:54 16 Oct 2019

GBP/JPY - Today's data summary

% change
-0.34%
Price Yen
138.7050
Change
-0.4700
As of 11:54 16 Oct 2019

GBP/USD - Today's data summary

% change
-0.31%
Price US dollars
1.2746
Change
-0.0040
As of 11:54 16 Oct 2019

Latest updates

Sterling down, but not as much

Sterling
BBC

The pound has been jumping about but is off the day's lows.

It is now at $1.2749. It hit $1.28 on Tuesday and has been below $1.27 earlier.

Talks enter last day before crunch EU summit

flags
EPA

Here's the latest BBC story on the Brexit talks.

EU and UK officials will resume Brexit talks this morning in the hope of reaching a deal that can be agreed by leaders at a key summit on Thursday.

Prime Minister Boris Johnson is expected to update the cabinet on the progress of the negotiations, which continued into the early hours.

On Tuesday there were reports a deal was imminent, amid claims the UK had made concessions over the Irish border.

But Downing Street said there was "more work still to do".

Pound falls

The pound has fallen back through $1.27- it hit a five month high of $1.28 on Tuesday.

That's after a government source said there was still more work to do on Brexit talks.

Pound 'undervalued'

BBC Radio 5 Live

Wake Up To Money

notes and coins
Getty Images

Jane Sydenham, investment director, Rathbone Investment Management, has been looking at at movements in the pound.

She told BBC Radio 5's Wake Up To Money that the currency had hit a fie month high on Tuesday on expectations that progress is being made in the Brexit talks.

"We’ve had a reasonably good rise in the pound in the last week or so it’s at the highest level in five months," she said.

"Markets are beginning to say this [Brexit deal] might happen"

"People have been feeling the pound is undervalued on a fundamental basis, the question was always going to be when are we going to see a rally," she said.

Pound jumps on draft Brexit deal rumours

Pound v dollar
Getty Images

Sterling has jumped against the dollar after reports that UK and EU negotiators are closing in on a draft Brexit deal.

Neil Wilson, chief market analyst for Markets.com, says: "These kind of reports expose just how vulnerable sterling is to headline risk. At present these are unconfirmed reports and need to be verified."

"If a draft deal can be achieved we would expect another spike north to $1.30 on cable in very short order, and potentially $1.3170 could be targeted. It could get very choppy now."

"However... there is yet a lot to overcome even if a deal is agreed - most importantly Parliament would need to back the agreement and this is far from assured."

Sterling touches five-month euro high

Pound coins and notes
Getty Images

The pound has hit its highest level against the euro since May as the currency continues to gain from hopes that a Brexit deal can be reached.

Just before midday it briefly sneaked above the €1.15 level, and although it has lost a bit of ground since then it still stands at €1.1486, up 0.6% for the day.

Against the dollar, the pound is currently up 0.3% at $1.2643.

Sterling bounces

Sterling chart
BBC

The pound has bounced on those remarks by Michel Barnier, who said a Brexit deal was still possible.

UK firms targeted amid weak pound

Today Programme

BBC Radio 4

Weak pound
Getty Images

Sophos might not be a name familiar to many people but on Monday the UK software developer was snapped up by US private equity firm Thoma Bravo for $3.8bn (£3bn) - netting the founders a £460m payday, according to The Times.

It is also a sign that, in the light of Brexit and its affect on sterling, that UK companies are now attractive targets for overseas buyers, says Laura Lambie, senior investment director at Investec.

"Certainly we've seen over the past few months a number of UK companies succumbing to foreign investors who are looking at the valuation in sterling terms and finding them very attractive, Greene King being one of them, Merlin Entertainment and now we have Sophos which has been snapped up by a US private equity firm.

"So yes, it does seem like our companies are looking very attractive in the light of sterling's weakness."