Cable up a handful of pips on the comment
I don't think Varadkar is saying he knows something that the market doesn't. Rather, he's indicating that he would be open to it. In that sense, it's good news because it means the EU isn't going to force a hard Brexit. That's why GBP is a bit higher on it.
I don't think the EU was ever going to force a hard Brexit decision but the bump shows the market is at least a bit concerned about it.