EU Agrees On Financial Settlement With The UK On Future Committments, Formula For "Brexit Divorce Bill"

Confirming reports from earlier in the week that the EU and UK have agreed on a financial settment for outstanding obligations as well as a formula for calculating the Brexit "divorce" bill, Reuters is out with the following headlines:

  • EUROPEAN UNION HAS AGREED A FINANCIAL SETTLEMENT WITH BRITAIN ON FUTURE COMMITMENTS - SENIOR EU OFFICIAL
  • LONDON HAS COMMITTED TO PAYING A SET SHARE OF EU BUDGETS AFTER LEAVING EU - SENIOR EU OFFICIAL
  • NO DISCUSSION OF NUMBERS, BUT BRITAIN AGREES ON FORMULA FOR CALCULATING BRITISH DIVORCE BILL - SENIOR EU OFFICIAL

With much of the rally in cable having already taken place in the past few days, which have seen the pair surge by 300 pips in three days, GBPUSD is up 30 pips on the headlines, once again pushing on 1.3520 despite the strong USD.