Did David Cameron and Donald Tusk's draft deal on EU membership help lift the pound?

Chris Papadopoullos
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British Pound Falls To Five Year Low Against The Dollar
Sterling staged a modest comeback after the draft agreement was published (Source: Getty)

The pound has bounced back against the dollar after the publication of a draft agreement designed to keep the UK inside the 28-member EU.

Currency experts any upward movement in sterling resulting from the deal was due more to the fact it reduced uncertainty, rather than the contents of the deal itself. The deal increases the chances of a summer referendum.

The pound climbed around 0.3 per cent against the dollar after the deal was published, helping it to erase earlier losses.

"The market is starting to get some clarity around when we're going to have the referendum," said Richard de Meo, managing director of Foenix Partners, a foreign exchange broker.

"It's something that's going to hang over the market for sometime in the UK."

"Everyone since the beginning the year has been very uncertain about what kind of referendum its going to be and when its going to be," said Jeremy Cook, chief economist and head of currency strategy at World First, a foreign exchange company.

"The fact we've got some feedback from the EU maybe gets us closer to an actual referendum date being announced."

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