The pound has surged to a six month high against the Euro after the UK and the EU reached a breakthrough in Brexit negotiations.
After the EU’s announcement that ‘sufficient progress’ had been made in the first round of Brexit talks, currency traders began buying sterling “at a huge rate”, sending it to €1.51.
That was a gain of 1.5 per cent from yesterday’s low of €1.131, and the highest level for sterling against the single currency since June.
Craig Erlam, senior market analyst at OANDA, told the Mail: ”The response in the pound to the announcement may come as a surprise given just how significant today’s agreement is, but it’s worth noting that this has been in the making over the last couple of weeks and it was in both sides’ interest to get this done today.”
‘Huge sigh of relief’
Businesses gave prime minster May a thumbs up after the news, as the two sides now began the task of thrashing out what trade deals will remain post Brexit.
Stephen Martin, director-general of the Institute of Directors, said: ”It went right down to the wire, but businesses will be breathing a huge sigh of relief that the UK and European Commission have reached agreement on phase one issues, putting us in a good position going into the Council meeting next week.”