The British pound strengthened by almost one percent on Wednesday after representatives of the United Kingdom and the European Union announced that “some progress” had been made in negotiations on the organization of post -rexite relations.
The pound added 0.9 percent against the dollar and got over $1.3 a pound. It then strengthened against the euro by 0.7 percent, while still in the morning trade it managed to reach a five-day low. However, negotiations between Brussels and London have given optimism to investors’ veins, which has had a positive effect on the pound’s exchange rate.
According to the British Prime Minister Boris Johnson, there are still some different views on the post Brexit agreement. The largest ones persisted in terms of fisheries regulation or competition. The pound was also helped by information, according to which both parties will continue negotiations even after the originally planned deadline for their completion, which was set for mid-October.
The United Kingdom left the European Union on January 1st this year and a one-year transition period for mutual relations began. During this period, although the United Kingdom is outside the European Union, it is still governed by its law so that its economy is not in shock, for example, by the creation of trade barriers after leaving the European single market.