Looks like we might finally get a deal
The pound rallied the most among major peers as signs the U.K. and European Union are close to agreeing a trade deal, and the latest progress in the development of a coronavirus vaccine added to optimism over the currency’s prospects.
Sterling rose as much as 0.8% to $1.3381, extending an advance that sent the currency to the highest level since early September. The pound climbed as much as 0.6% against the euro.
However, it goes on to say…
With the market expecting an accord to materialize, a breakdown in talks would see a much larger move lower in the cash market than any rally off of news of a deal.