The British pound has rallied modestly on news that a post-Brexit free trade agreement with the EU seems imminent. Sterling had been under pressure against both the US dollar and the euro earlier this week, following the blockades at Dover and the extension of coronavirus restrictions, trading at alow of US$1.3187 and €1.0846 on Monday, Sky News reports. However, news that trade talks were reaching a positive conclusion have sent the pound up to as US$1.3608 – close to a two-and-a-half year high against the greenback – and to €1.1163. The pound has also risen against other major currencies such as the Japanese yen and the Swiss franc. On the equity markets, sterling strength has held back the FTSE-100 with its legions of big foreign currency earners, but domestically-focused stocks, particularly the banks and the housebuilders, are trading higher.

Source: The Standard December 24, 2020 11:48 UTC