Sterling streaks to third straight weekly gain after Brexit draft deal

The British Pound slipped against the US dollar, today, its first drop in the last four days, to pull back from 5-month peek, on increased profit-taking, but still poised to extend its weekly gains for the third straight week, after the British PM Boris Johnson agreed with the European Commission yesterday on a draft Brexit deal to prevent a chaotic departure in case of a no-deal Brexit on October 31. 

GBP/USD fell by 0.4% to $1.2839, from the opening of $1.2890, with an intraday high of $1.2891.

Sterling gained 0.5% against the US dollar yesterday, its third straight daily gain and hit a 5-month high of $1.2990, amid positive Brexit news.

During this week, the pound gained 1.5% against the US dollar so far, to head for its third straight weekly gain in the longest weekly gains streak in 2019.

The European Union leaders agreed with the UK on a Brexit deal during the EU economic summit in Brussels yesterday, which provides the UK with the chance of leaving in orderly fashion on October 31.

This week saw intensive Brexit talks, which resulted in the European Commission President, Jean-Claude Juncker, announcement of a draft Brexit deal, and was later passed by all European Union leaders.

British PM Boris Johnson described the deal as a great chance that reflects the hard work that has been done from both sides, and urged the British lawmakers to support the deal in its vote next Saturday in order to move on other priorities such as the environment, protecting society from violent crimes and improving the standards of living.

Johnson will put the deal before the British parliament for a vote on Saturday, in its final phase ahead of entering into force if the British lawmakers approve it.

The Prime Minisiter described the deal as the UK's best option with the European Union, and asked the EU not to extend the Brexit deadline if the deal was rejected, and implement it as scheduled, which means a chaotic no-deal exit scenario still persists.