Pound jumps on report that EU is said to be ready to make major Brexit concession
Cable surges to a session high of 1.2291
The report comes from The Times here and says that the EU is prepared to provide a mechanism for Northern Ireland to leave the Irish backstop after a set number of years.
The continued debate on the backstop remains a major sticking point but I'm not sure if this will be enough at the end of the day. I'm not even sure if the idea above will fly with Ireland but we will have to see.
Essentially, what the above means is that this is a Northern Ireland-only backstop but with a time limit - something which was basically near unimaginable over the past few months.
This could also really be seen as a make-or-break deal being offered at the last minute by European officials and if this gets shot down, I'm not sure there will be another one coming. Either way, hope springs eternal as the pound jumps higher on the day.
Cable moves up to test key hourly moving averages near the 1.2300 handle and is back down to 1.2270 as sellers keep up their defence for the time being.