Investing.com – The pound reversed earlier losses on Tuesday amid fresh optimism over Brexit, following a report that the European Parliament is drawing up a plan to give Britain “privileged” access to the single market.
GBP/USD was trading at 1.4002 by 05:12 AM ET (10:12 AM GMT), up from an earlier low of 1.3931.
The pound was boosted after a report in Business Insider saying that the European Parliament is preparing a “detailed,” 60-paragraph resolution which will call for more flexibility in future relationship talks with Britain.
The parliament wants the European Union to negotiate an ‘association agreement’ which could give Britain “privileged” single market access and membership of EU agencies.
The resolution marks a break from the position of the EU’s chief Brexit negotiator.
The report helped ease some concerns over the prospect of a hard Brexit.
The euro fell to the day’s lows against sterling following the report, with EUR/GBP losing 0.55% to trade at 0.8813 from around 0.8870 earlier.