Pound Climbs As U.K, EU Set To Announce Trade Deal

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The pound climbed against its major counterparts in the European session on Thursday, as traders awaited a historic post-Brexit deal following months of intense negotiations between the U.K. and the European Union.

Officials are finalizing the details of a deal in Brussels, with an announcement due today.

Prime minister Boris Johnson is expected to speak with European Commission President with Ursula von der Leyden over phone shortly.
The press conference that was initially due early in the day has been delayed as the two sides continue to thrash out the final details and draft of the U.K.’s divorce.

The two sides have agreed to a new five-and-a-half year transition period on fishing rights, which will cut the EU’s fishing quota cut by a quarter.

The pound appreciated against the euro and the franc, touching more than 3-week highs of 0.8958 and 1.2095, respectively. This followed early lows of 0.9031 against the euro and 1.1968 against the franc of the pound. The pound is poised to test resistance around 0.88 against the euro and 1.22 against the franc.

The pound spiked up to a 1-week high of 1.3606 versus the greenback and near a 4-month high of 141.04 versus the yen, up from its early lows of 1.3484 and 139.59, respectively. On the upside, 1.42 and 145.00 are possibly seen as its next resistance levels against the greenback and the yen, respectively.

Looking ahead, Canada building permits for November are due out in the New York session.

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