Pound Rebounds Against Dollar

In a piece published by Handelsblatt, the newspaper reported that the EU's offer is linked to the UK fulfilling all of its obligations as a member state but surrendering its voting rights. Last year’s referendum saw most British voters opt to leave the political union with Prime Minister Theresa May triggering Article 50 in March which officially began exit negotiations.

Earlier on Thursday, the Pound tumbled to as low as $1.3121 after EU’s chief Brexit negotiator, Michel Barnier, remarked that talks around the UK divorce payment had hit an impasse, increasing the likelihood of a messy departure. GBP rallied the most in four years in September after the Bank of England signalled it might be ready to hike interest rates.

Since then, the currency has pared almost half of those gains amid concern that Britain’s Brexit talks are making little progress.

A sharp rise in production of capital goods boosted August industrial output in the Euro Area, boding well for growth in the monetary union during the second half of the 2017. Figures published by Eurostat on Thursday showed that output expanded by 1.40% month-over-month and 3.80% on an annualized basis. Both figures easily topped the average forecast of economists surveyed by Reuters for a 0.50% monthly rise and a 2.60% year-on-year increase.

The monthly pace of expansion was the fastest on record since November of 2016. Furthermore, July output data was revised upwards to 0.30% on the month and to 3.60% year-on-year.

The German DAX 30 equity benchmark surged above the 13,000-mark for the first time in its 30-year history during Thursday’s trading session, with December futures last seen around 12970.