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GBP jumps sharply after Irish Prime Minister says he is “absolutely convinced” there will be a deal by the end of October

The British pound inched up against the U.S. dollar, supported by comments by Irish Prime Minister Leo Varadkar, who said he believes a Brexit deal is likely to be reached.

On Thursday, the Prime Ministers of the U.K. and Ireland released a joint statement saying they saw a potential pathway to a Brexit deal.

“The Prime Minister (Johnson) and Taoiseach (Varadkar) have had a detailed and constructive discussion,” the joint statement said.

“Both continue to believe that a deal is in everybody’s interest. They agreed that they could see a pathway to a possible deal.”

Varadkar added that he was “absolutely convinced” a deal could likely be reached by the end of October when the U.K. is expected to leave the European Union.

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