The pound jumped to a one-year high following the weakness of the US dollar and positive reports that the UK and the European Union (EU) have made progress on fisheries issues.
The pound hit 1.35,000 against the USD in the New York session, following EU chief negotiator Michel Barnier's statement that the UK had reduced its demand for a larger share of its catch in its waters after Brexit.
This has indirectly raised hopes that one of the most difficult issues to be agreed in such negotiations can be resolved.
According to The Telegraph, Barnier told the EU ambassador that Britain had signaled that they could receive 60% of the stock value from UK waters starting January 1, down from the 80% initially claimed.
However, with just a few weeks left before the deadline for the transition period on December 31, the market needs to be cautious in dealing with the mixed message about the development of Brexit trade negotiations which also dominate the direction of the pound.
Meanwhile, the weakness of the greenback dollar at a 2-and-a-half-year low against most major currencies also prompted the strengthening of the pound sterling.
