The pound erased losses recorded over the weekend by rising again to the price level of 1.28000 against the USD during the opening of European session trading today.
This has been fueled by growing confidence that the Brexit trade agreement could be reached when the European Union (EU) and the UK are reported to begin their ninth talks on Tuesday, which is also the final stage of talks.
Entering the European session, pound sterling traded higher at $ 1.2830 against the USD and strengthened against the euro.
Following the disruption caused by the second wave of the Covid-19 pandemic that hit Europe again, both sides are now under pressure to reach an agreement by the October 15 deadline.
Most businesses in the UK are unable to prepare for the possibility of a Brexit no-deal due to the pandemic and are desperate to reach an agreement to avoid chaos at the UK border.
The three-day talks, which will end on Thursday, will feature keynote speeches from EU Brexit negotiator Michel Barnier and UK chief negotiator David Frost on the outcome of talks between the two sides.
As this is the last official negotiation, the briefing that will be delivered is very important for the future relations of the EU and the UK, as well as the pound sterling.
