⏳ Final hours! Save up to 60% OFF InvestingProCLAIM SALE

Pound Jumps as UK-EU Reportedly Clinch Brexit Deal

Published 12/23/2020, 02:54 PM
Updated 12/23/2020, 03:05 PM
© Reuters.
GBP/USD
-

By Yasin Ebrahim

Investing.com – The pound surged on Wednesday on reports the UK and EU have clinched a Brexit deal after a nine months of negotiations.

GBP/USD rose 0.94% to $1.3485.

The UK and EU have reached an agreement on a post-Brexit trade deal and are in the process of finalizing the legal text of the accord to present to EU members.  

The Daily Mail's Jason Groves, citing sources, said a last-minute collapse was "highly unlikely," with UK Prime Minister Boris Johnson said to be weighing up whether to announce a deal on Wednesday or Thursday. 

There is mounting pressure to wrap up the deal by Thursday to allow enough time to get it ratified before the end of the transition deadline on Dec. 31. 

But full ratification by Jan. 1 is unlikely amid a lack of time for EU members to scrutinize the deal. The accord, would, however, be applied on a provisional basis, with EU members voting later in the month, according to media reports.

The deal has been long in the making, with both sides choosing to kick the can down until the last minute.  The UK and EU started talks on a post-Brexit deal on Feb 1, a day after the UK officially withdrew from the EU. 

Market participants piled into sterling amid numerous reports that the announcement of a deal was imminent. 

"While headlines have oscillated back and forth between a deal has been struck and advising caution, it seems that at the point of publishing the headlines and guidance from officials lean toward a decent chance of striking a formal agreement today," Scotia Economics said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.