Commenting on the agreement, "the deal is fantastic news for families and businesses in every part of the UK," a Downing Source told Reuters. "We have signed the first free trade agreement based on zero tariffs and zero quotas that has ever been achieved with the EU."

Meanwhile, "we will have a strong trading relationship with the EU and deepen our trade with partners across the world through our independent trade policy," UK Trade Secretary Liz Truss tweeted out.

Market reaction

The British pound started to erase the gains it posted against its rivals earlier in the day. Investors may be looking to sell the fact following a two-day rally witnessed in the GBP/USD pair, which was last seen gaining 0.45% on the day at 1.3552.

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FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

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