Pound surges on hopes of Brexit breakthrough
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The pound has surged against the dollar and the euro amid growing optimism a Brexit deal is close to being agreed.
Sterling leapt 1.4% to trade at $1.3036 against the dollar in afternoon trade, whilst against the euro it jumped to a seven-month high of €1.1542.
The move came after a significant breakthrough in talks between UK and EU officials with the draft text of a Brexit deal agreed.
But analysts warned the pound’s rally could be short lived.
“With the UK Cabinet and Parliament yet to agree to the plans, we are clearly not out of the woods yet,” said Capital Economics economist Ruth Gregory.
She said she would not be surprised if a deal wasn’t secured until next year, with the pound likely to “pull back” again by the end of the year.
