Cable jumps by 60 pips on the news
GBP/USD rises to its best levels on the day with the high reaching 1.3044, just under the 100-hour MA (red line) @ 1.3046. Price moved on news here that the EU is said to be willing to offer a UK-wide customs union agreement proposal to Theresa May, helping to meet the demands she wanted when talks broke down ahead of the EU Summit earlier this month.
However, a key caveat to the reported offer is that it has to be negotiated as a separate treaty. That means it will not be part of the withdrawal agreement and I highly doubt that will fly with the UK. But it does at least offer them an option and an «out» as recent negotiations continue to stall.
We’ll have to see how May’s camp will identify with this offer here but I don’t believe it is touted to be as good as what it appears on the initial headlines. And even so, it doesn’t fully resolve the issue with the Irish border/backstop and we still need to see what sort of proposal May can bring to the table — one that at least parliament can approve of at this point.