But is the optimism misguided?
The pound is posting modest gains on the session following Barnier's comments with the high touching 1.2472 as price makes its way towards the key hourly moving averages.
The headline from Barnier's remarks sound pretty but he also stated that there is no "easy solution" to the border issue and that it will take time to work out any possible alternative arrangements. Best-case scenario, if they can work out a solution, that'll be great for all parties involved but if this could've been done, we would've seen it already during Theresa May's tenure as prime minister.
As it stands, the most plausible way is through a technological solution but as the meme saying goes... The technology just isn't there yet.
For me, Barnier's comments don't change anything in the current Brexit picture but the recent recovery in cable is also suggestive that short positions are being squeezed a little as positioning starts to be a little stretched in the pound.
That said, I'd still be looking for rallies to sell (barring any major Fed headlines) and a move closer to key near-term resistance levels and the 1.2500 level presents a decent opportunity to add to that if and when the time comes.
