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Pound gains on rumors of Brexit breakthrough

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The British pound gained against major currencies on Monday amid rumors that U.K. and EU negotiators will announce a transition deal agreement later this week.

The pound climbed to a peak of 1.4046 versus the U.S. dollar and pulled the EURGBP pair down to a low of 0.8755.

Meanwhile, Britain’s Brexit secretary David David will talk with chief EU negotiator Michel Barnier over Brexit, as of 11:45 GMT, where they are predicted to announce a transitional deal that could avoid a hard Brexit next year.

“The European Commission will publish an annotated version of the Withdrawal Agreement with color coding later on Monday, according to an EU official familiar with the matter,” according to Bloomberg.

The meeting comes ahead of the EU summit later in the week, and monetary decision by the Bank of England.

Eyes will also focus on important U.K. economic data due this week, including inflation, unemployment and retail sales.

However, investors would pay more attention to the Federal Reserve’s rate decision and the G20 finance ministers’ meeting. 

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