LONDON — The pound is slightly higher against the dollar and the euro at lunchtime in London on Monday, with Britain beginning official Brexit negotiations with the European Union.
Brexit Minister David Davis begins talks with EU officials in Brussels on Monday to work out a deal on Britain's exit from the EU and its future relationship with the bloc. Officials on both sides have until March 2019 to work out a deal, after which Britain will official exit the EU.
CMC Markets' chief market analyst Micheal Hewson says in an email: "The initial tone of these talks could well offer significant clues as to how long, protracted and adversarial they are likely to be."
The other major story on Monday morning is a "potential terrorist attack" in North London, where a van was driven into a crowd outside a mosque in the early hours of the morning. One person has been confirmed dead and at least 10 are injured.
Sterling was marginally lower against the dollar and euro in early morning trade in London. But, at close to 1.00 p.m. BST (8.00 a.m. ET), the pound is making gains against both.
Sterling is up 0.21% to $1.2790 against the dollar:Markets Insider
And the currency is up 0.09% against the euro to €1.1423:Markets Insider
The euro got an overnight boost after French President Emmanuel Macron secured a comfortable majority in parliament in Sunday's election.
However, Hewson cautions: "Macron will need to tread carefully, with some questioning the validity of his mandate on a 45% turnout, the lowest in fifty years.
"He will also face an enormous amount of resistance on the ground from the vested interests of the trade unions which still wield an enormous amount of influence, and could make life very difficult for the inexperienced new President and his party."
- The pound has pulled back from its post-Bank of England jump
- The pound is falling back after a troubling set of wage data
- The pound is rallying as it recovers from a post-election dip