The British pound sterling climbed by as much as 1.2% to $1.3384 as of Sunday morning, following talks between the United Kingdom and the European Union regarding a trade deal following Brexit.
During discussions, British Prime Minister Boris Johnson and European Commission President Ursula von der Leyen agreed that both sides would go “the extra mile” to ensure that a post-Brexit agreement would be reached. According to reports, negotiators had until Sunday to confirm a deal.
With the United Kingdom scheduled to formally withdraw from the European Union on December 31, 2020, investors widely hoped for a breakthrough in talks by Sunday. According to Marc Chandler, chief market strategist at Bannockburn Global, even if talks were to break down, there is a likelihood that the two sides would return to the negotiating table at the start of next year.
The pound sterling was not the only currency to strengthen amid the latest Brexit news. The Australian dollar as well as the New Zealand dollar also enjoyed slight rises on Sunday. Largely driven by optimism surrounding the latest talks, traders moved to buy the sterling in large quantities.
