The GBP moved higher against the dollar on rising expectations the EU and UK will concur on a trade deal, with Goldman Sachs (NYSE:GS) forecasting both parties “likely” to reach an accord by early Monday.
GBP/USD rose to 0.34% to $1.2974.
Hopes for an agreement on a post-Brexit trade deal had been boosted on reports EU chief negotiator Michel Barnier aims to put up talks with European coastal states to obtain more freedom to negotiate terms with the U.K. on fisheries, a sticking that is key that has held right back progress.
The sense of urgency comes just days after Prime Minister Boris Johnson and Commission that is European president von der Leyen, agreed to intensify Brexit talks to close “significant gaps” that stalled progress on talks.
A breakthrough when U.K. Prime Minister Boris Johnson’s meets Commission that is European President von der Leyen on Saturday could see the pound strengthen to a four-week high as institutional investors unwind their short positions and hedge funds chase the market.
GBP may be on verge of the trend that is fresh the dollar
The mood is already improving. Pound traders stay bearish yet sentiment for the ahead has picked up markedly since mid-September, according to risk reversals, a gauge of market positioning week. The money rose just as much as 0.5% to $1.2954 on before paring gains Friday.
The statement that is joint a bullish call from Goldman Sachs, urging clients to buy sterling.
“a declaration that is joint on Saturday constituted a clear governmental signal that enough had been achieved to further intensify technical talks,” Goldman said.
The bank, however, would not totally take the prospect of a Brexit that is no-deal the table, saying “perceived probability of ‘no deal’ will persist beyond the next European Council meeting in mid-October.”
The UK is placed to leave the EU with no deal when the change without an agreement and The GBP moved higher against the dollar on rising expectations.