GBP/USD has fallen back below the 1.2000 level. A looming Brexit deal could lift the Pound, but only temporarily, economists at MUFG Bank report.

Temporary boost from Northern Ireland Brexit deal?

“The recent modest improvement in sentiment towards the UK could be further improved in the near-term by reports that the UK is close to agreeing a deal with the EU over a post-Brexit settlement for Northern Ireland.” 

“While the announcement of a deal could temporarily support the Pound, it is unlikely to have a significant and lasting impact on GBP performance. The recent broad US Dollar rebound and deterioration in global investor risk sentiment are more important in driving Cable lower in the near-term.”