Pound sticks above $1.27 after Prime Minister Theresa May promises rights to EU citizens

 
Helen Cahill
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Prime Minister Theresa May has arrived for an EU Council meeting in Brussels today (Source: Getty)

Sterling has climbed this morning in response to Prime Minister Theresa May's promise to allow 3m European Union citizens living in the UK the right to remain after Brexit.

At time of writing, sterling was up 0.29 per cent at $1.27 as traders took the Prime Minister's promise as a sign of government developing a softer stance on Brexit.

Read more: Brexit one year on: the impact on the FTSE and the pound

Under May's plans, EU citizens who have lived in the UK for five years will be given settled status and receive the same benefits as UK citizens in areas such as healthcare, education and pensions.

Today marks one year since the EU referendum, a vote which sent the value of the pound tumbling by 15 per cent.

Paresh Davdra, chief executive and co-founder of RationalFX, said: "With the PM's announcement representing a positive step forward in early negotiations, the pound could potentially see further gains as negotiations continue.

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"The offer represents a much softer and conciliatory tone than had previously been feared, and following the concessions given by the UK at the beginning of the week, investors could anticipate a softer Brexit developing."

Meanwhile, the FTSE 100 is down 0.14 per cent and is on track for its third weekly loss in a row, as lower oil prices have weighed on European stocks more generally.

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