The pound sterling jumped nearly to 31 months on Thursday as it was driven by sentiment that the UK and the European Union would reach a long-awaited Brexit trade agreement.
The sterling currency strengthened 0.8% to $ 1.3593 after hitting the $ 1.3616 exchange rate against the US dollar initially. Earlier this month, the pound broke through its 2020 high of $ 1.3624, an unprecedented level since May 2018.
Brexit negotiators on both sides are said to be at the peak of a post-Brexit trade agreement deal on Thursday. This comes after months of intense political disputes between the two sides on a number of important issues.
According to analysts, the agreement this time is not expected to be comprehensive but it is enough with some things will be extended in the next discussion next year.
Irish Foreign Minister Simon Coveney said a post-Brexit trade deal was expected to be signed on Thursday, after key obstacles to the agreement had shown a positive outcome.
Convey added that agreement could be reached within hours. Earlier, early Thursday morning, both parties postponed their agreement because they wanted to make a final study in the ‘small text’ in the fishing agreement.
Berenberg economist Kallum Pickering said the agreement would support the pound's performance as the economic risks it had feared would be lost with the deal.
