Breaking: UK-EU could reportedly reach a deal by end of week, GBP/USD surges above 1.3400

Eren Sengezer FXStreet

The GBP/USD pair surged higher after the Times Radio reported that the trade talks between the UK and the EU have entered "the mythical tunnel."

The Time Radio further noted that the EU's chief Brexit negotiator, Michel Barnier, has stopped internal debriefs to the wider EU after delivering the last one last Friday and that a deal could be finalized by the end of the week, per Reuters.

Market reaction

The British pound gathered strength against its rivals on this headline. As of writing, the GBP/USD pair was up 0.83% on a daily basis at 1.3432. Furthermore, the EUR/GBP pair lost nearly 50 pips in a matter of minutes and was last seen trading at 0.8970, where it was still up 0.2% on the day.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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