Sterling jumps and FTSE falls as text leaked on UK-EU future ties

  • Sterling jumps after confirmation that negotiators have agreed a draft text on the future relationship between the U.K. and EU.
  • The document will now be analyzed by representatives from 27 EU countries.
  • If a consensus is found then heads of state will sign the text off on Sunday.
Theresa May, U.K. prime minister, left, waves as she stands with Donald Tusk, president of the European Union (EU), outside number 10 Downing Street in London, on Thursday, April 6, 2017
Simon Dawson | Bloomberg | Getty Images
Theresa May, U.K. prime minister, left, waves as she stands with Donald Tusk, president of the European Union (EU), outside number 10 Downing Street in London, on Thursday, April 6, 2017

Sterling has risen more than 1.2 percent following the leak of a text which outlines the future relationship between the European Union and United Kingdom.

The draft text is now being pored over by representatives of the EU's 27 remaining members. If agreement can be found, the heads of state will sign off on the document on Sunday.

Donald Tusk, the president of the European Council — a body that represents the 27 Heads of State — confirmed in a tweet that the text had been agreed in principle by negotiators.

Sterling hit a five-day high versus the U.S. dollar after the text was pushed into the public domain. Reacting to the pound's increase in value, the FTSE 100 has hit a session low.

One key statement within the text is the declaration that both parties have "a trading relationship on goods that is as close as possible."

The U.K. Prime Minister Theresa May spoke outside Downing Street on Thursday, confirming that the text had been agreed with the EU and claimed the full deal is "within our grasp".

May is scheduled to make a further House of Commons statement at 3 p.m. London time.