European session review: GBP strengthens as UK PM's is to intervene in trade talks with EU

GBP rose against most other major currencies in the European session on Friday as market participants cheered the announcement about Boris Johnson’s intervention in trade talks with the EU.

The UK PM Boris Johnson's spokesman announced the prime minister's "intervention" in Brexit talks. The UK's PM is set to hold talks with European Commission (EC) president Ursula von der Leyen tomorrow afternoon "to take stock of negotiations and discuss next steps". It will be the first time Johnson gets involved in talks since June.

Market participants reacted positively to this announcement, as they believe that the talks between Johnson and von der Leyen may spur a breakthrough in Brexit trade negotiations.

However, the UK's housing secretary Robert Jenrick said it is too early to say what tomorrow's talks between the UK's PM and EC president may mean, adding that there are still some very significant issues to be resolved.

Media also reported that the EU's sources expect that there will be more talks between the UK and the EU negotiators before the next EU summit, set to be held on October 15-16, since they are not going to reach any firm compromise at the last scheduled round of trade negotiations, ending this week.

Investors are also awaiting statements from the UK and the EU chief Brexit negotiators David Frost and Michel Barnier, who are to meet today on the final day of the formal talks.