Pound sterling strengthens on reports of Brexit deal

Sterling extended gains on Thursday amid expectations a long-elusive Brexit deal was imminent, raising hopes the UK can avoid a turbulent economic rupture on New Year’s Day. Report informs citing the Reuters.

The dollar was on the back foot in holiday-thinned trading as hopes for an agreement that would protect some $1 trillion in annual cross-channel trade from tariffs and quotas sapped demand for the safest assets.

The British pound strengthened 0.4% to $1.3546 in Asian hours after surging 0.9% in the previous session to snap a three-day losing streak.
The dollar index was at 90.233 following Wednesday’s 0.3% slide. The euro strengthened 0.1% to $1.22030, adding to a 0.2% gain overnight.

While there has been no official confirmation from either side that the months of negotiations had reached a conclusion, a senior British government source said Prime Minister Boris Johnson was poised to do a trade deal with the EU, after media reports said the agreement had already been done.

A source at the EU’s executive Commission said talks were still underway, and another British government source was also cautious, saying negotiations were ongoing.