British Pound Rises As UK, EU Reach Post-Brexit Trade Agreement

The British pound sterling is rising on Christmas eve as it appears the United Kingdom and the European Union have reached a new post-Brexit trade agreement, averting chaos in the broader economy and financial markets. The deal comes as Great Britain was set to leave the 27-nation bloc’s economic structures at the end of the year.

According to early reports, the agreement guarantees that the UK and the EU will continue to trade in goods and services without tariffs or quotas after England exits the EU on January 1. Britain’s parliament is scheduled to vote on the deal on December 30, while the European parliament may not take action until after January 1.
The specifics of the trade pact will not be known until the 2,000-page agreement is revealed. UK officials note that the agreement will leave the UK with sovereignty over its money, borders, laws, and fishing waters. EU heads say that the deal protects the trade bloc’s single market and includes safeguards to make sure that the UK does not undercut the bloc’s standards.
British Prime Minister Boris Johnson tweeted that “we have taken back control of our laws and our destiny.” Johnson added:

We will be your friend, your ally, your supporter and indeed, never let it be forgotten, your number one market.

European Commission President Ursula von der Leyen called it a “fair” and “a balanced deal,” despite the oftentimes tense negotiations being “a long and winding road.”

Parting is such sweet sorrow. It is time to leave Brexit behind. Our future is made in Europe. We have finally found an agreement. It was a long and winding road but we have got a good deal to show for it. It is fair, it is a balanced deal and it is the right and responsible thing to do for both sides.

Despite the positive news, it was bittersweet due to another 39,000 confirmed cases reported in the UK. Plus, officials remain concerned about the two new coronavirus strains accounting for about half of the new cases. In total, the UK has had 2.15 million infections, with a death toll of more than 69,000.
On the data front, automobile production tumbled 1.4% year-over-year in November, up from -18.2% in October.
The UK bond market was mixed. The benchmark 10-year government bond was flat at 0.257%. The two-year note slipped 0.021% to -0.104%, while the 30-year bond was flat at 0.866%.
The GBP/USD currency pair rose 0.31% to 1.3538, from an opening of 1.3495, at 16:59 GMT on Thursday. The GBP/JPY advanced 0.41% to 140.33, from an opening of 139.75.
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Original from: www.earnforex.com