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Sterling jumps after EU's Barnier says Brexit deal possible this week

Credit: REUTERS/PHIL NOBLE

Sterling jumped in early London trading on Tuesday and hit a five-month high versus the euro after the European Union's chief Brexit negotiator said a deal with Britain over the terms of their divorce was still possible this week.

LONDON, Oct 15 (Reuters) - Sterling jumped in early London trading on Tuesday and hit a five-month high versus the euro after the European Union's chief Brexit negotiator said a deal with Britain over the terms of their divorce was still possible this week.

The pound rose as much as 0.7% to $1.2699 GBP=D3 and by a similar magnitude against the euro to 86.90 pence EURGBP=D3 after Michel Barnier said a deal was still possible.

Sterling came off those highs after Barnier said a deal, while achievable this week, was more and more difficult.

The British currency has enjoyed a huge rally since late last week, when London and Brussels said they would restart intense negotiations to try and agree a Brexit deal before Britain's scheduled departure date of Oct. 31.

(Reporting by Tommy Reggiori Wilkes; editing by Sujata Rao)

((thomas.wilkes@tr.com; Reuters Messaging: thomas.wilkes.thomsonreuters.com@reuters.net))

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