Speaking of the Brexit extension, Mr Tusk said: “I would call it a ‘flextension’. How would it work in practice? We could give the UK a year-long extension, automatically terminated once the Withdrawal Agreement has been accepted and ratified by the House of Commons.”
This has eased fears of a possible no-deal on 12 April, when the UK is currently expected to leave the EU.
Concerns within the EU are, however, rising, as this will mean that the UK would face becoming involve in the EU’s long-term planning during the summit next week and further into the year.
Prime Minister Theresa May must now put forward a withdrawal agreement that will gain the necessary support from Parliament, and as MPs are showing signs of increasing division, this is haunting the markets.
Meanwhile, the UK Halifax house prices figures for March came in at a -1.6 percent fall, leaving some Sterling traders feeling anxious.
Russel Galley, a Managing Director at Halifax commented: “Industry-wide figures show that the number of mortgages being approved remains around 40 per cent below pre-financial crisis levels, and we know that lower levels of activity can lead to bigger price movements.”
US dollar traders, meanwhile, will be awaiting the publication of the US non-farm payrolls figures for March today, which are expected to show a solid increase.
These will be followed by the release of the US average hourly earnings figures for March. Any signs of an improvement could see the greenback rise.
Nevertheless, the pound US dollar exchange rate will remain dictated by Brexit developments, and any signs of an extension forthcoming from the EU would likely benefit Sterling, despite whatever political ramifications it may set in action.