- Pound surges higher after reports that EU and UK negotiators have agreed a Brexit deal.
- The pound is up more than 1.3% against the dollar on the day, and has climbed above the $US1.30 mark.
- It is also significantly higher against the euro.
- Follow the pound’s movements live at Markets Insider.
The pound is charging higher against other major currencies on Tuesday afternoon after reports that EU and UK negotiators have agreed a Brexit deal.A senior EU source confirmed those reports to Business Insider
Cabinet ministers are reportedly being briefed this evening ahead of an emergency Cabinet meeting that will take place on Wednesday, where May will aim to secure their agreement.
News of the reported agreement sent the pound – which is incredibly sensitive to Brexit developments – surging. Around 30 minutes after news first broke it is close to 1.4% higher against the dollar, breaking above the psychologically significant $US1.30 mark.
The pound, which has been trading in positive territory all day, is also significantly higher against the euro, trading at €1.1539, a gain of close to 0.8%.
Market analysts greeted news of a possible deal warmly, but warned there are likely “plenty more bumps in the road ahead” for the pound, as the full substance of Brexit is agreed.
“Ultimately, the ability of sterling to build on these gains and gather some real momentum in the coming weeks hangs on May’s ability to convince her colleagues that this is the best deal on the table,” Craig Erlam of OANDA said in an email.
“Given how the last 21 months have gone, I think there’s plenty more bumps in the road ahead which will ensure this is anything but an easy ride.”
Here’s how the pound looked around 4.35 p.m. GMT (11.35 a.m. ET):
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.