The pound traded higher at the start of the European session after being shown positive reports on Brexit trade negotiations, raising market expectations that a deal could be reached.
The pound sterling rose 0.5% with trading around the 1.34250 price level against the US dollar as market focus now focused on a four-point meeting between UK Prime Minister Boris Johnson and EU Commission President Ursula von der Leyen tonight.
Most recently, UK Senior Minister Michael Gove has said that Britain could see room for compromise on fisheries issues in the Brexit trade talks.
However, a compelling reason to compromise is the principle that the UK will be an independent coastal country and it has become a problem for negotiations between the two parties.
Meanwhile, Irish Deputy Prime Minister Leo Varadkar said on Wednesday that he believed there was a possibility that Britain and the EU could reach a trade agreement in the next few days and place a 50% chance of success.
This statement to some extent relieved investors ahead of tonight's meeting of PM Johnson and von der Leyen.
