GBP/USD takes out the 1.3000 level
The latest pop seems to come from a headline that EU's Barnier is saying that they are "open to discussing other backstops" with regards to the Irish border.
As one of our readers pointed out earlier, this came from a transcript released by the UK parliament here. Among other things, Barnier also refused to comment on the acceptance/rejection of the Chequers proposal. I'm really finding it difficult to see this as any new development in the Brexit rhetoric. We've been here before.
In the transcript, Barnier also reiterated that there's still no solution to the Irish border at the moment and there needs to be one in order for talks to progress. He also maintained that in any event, the EU is also preparing for a no-deal outcome still. I don't see how that is perceived as a change in his stance but he did mention that they are ready to "simplify checks" when it came to the Irish border.
There's a hint of softening but I don't believe it really changes things all too much. But nonetheless, the pound has moved higher on the back of that but I'd be a little wary of the gains here. We're approaching resistance around the 1.3030-40 levels so that will be the next key area for buyers to break above before any further run towards the upside for the pair.
