Pound drops from three-month high on Brexit deal reality check

The currency is still down about 15% since the day before the Brexit referendum in June 2016.

LONDON: The pound pulled back from a three-month high and U.K. government bonds rallied as traders reassessed the prospect of the U.K. securing a Brexit deal this week.

Sterling dropped as much as 0.9% against the dollar after surging 3.8% during the previous two days amid optimism the two sides would reach an agreement to avoid a no-deal. The European Union’s chief Brexit negotiator Michel Barnier told envoys on Sunday that U.K. Prime Minister Boris Johnson’s proposals for breaking a deadlock over the Irish border risked leaving the bloc’s single market vulnerable to fraud, officials said.