The pound sterling started European session trading with a drastic jump to the price level of 1.34000 as uncertainty over Brexit trading negotiations continued to haunt the market.
The European Union (EU) and the UK have so far not reached an agreement on ongoing negotiations in London.
UK cabinet minister Michael Gove said in a recent statement that both sides were still stuck on three key issues, namely fisheries, fair competition and ways to resolve disputes in the future.
EU Brexit chief negotiator Michel Barnier initially offered to provide between 15 and 18% of the fish caught in UK waters under the agreement, which is estimated at around £ 105 million. However, it was flatly rejected by Britain.
Gove disputed the EU's alleged demand for large-scale fish in UK waters, saying it was unfair, adding that there was no reason why Britain could not control their own waters.
Despite the rather disappointing statement, the pound continued to rise higher at the opening of the European session. This may come as a surprise to investors who are already aware that Brexit negative developments could drive the pound sterling to fall.
However, due to the weakness of the greenback dollar which slipped back to around the 2 and a half years low, the pound took advantage of this opportunity to make a profit.
The market is now awaiting testimony from Federal Reserve (Fed) Chairman Jerome Powell who will testify before the Senate Banking Committee tonight.
