The pound snapped higher in early trading after the European Union's chief Brexit negotiator told the European parliament that an agreement could be reached.
Speculation is growing that London and Brussels are gearing up to resume stalled trade talks, despite prime minister Boris Johnson warning the UK to prepare for a no-deal Brexit.
Tensions on stalled Brexit trade talks heightened on Friday as Prime Minister Boris Johnson said Britons should prepare for no-deal if the EU did not compromise.
The Bank of England and the Financial Conduct Authority have told the City to prepare for potential market disruption when the UK leaves the EU at the end of 2020.
There is cause for optimism regarding the probable endgame for talks between Brussels and London on Britain's withdrawal from the single currency bloc.
The UK could end up paying costs of $174bn (£134bn) a year over the impact of Covid-19 and no-deal Brexit on the national economy, said the latest report by Baker & McKenzie.
Boris Johnson and Ursula von der Leyen will hold personal talks this weekend in an attempt to take Brexit trade negotiations into the so-called tunnel phase.
The pound spiked on Friday on news that UK prime minister Boris Johnson would speak with European Commission president Ursula von der Leyen on Saturday to “take stock” of negotiations and “discuss next steps” on a Brexit trade agreement.
EU officials said no “landing zones” were in sight trade talks with the UK, an official with the bloc reportedly said on Thursday after Tweets by a Financial Times reporter citing British officials saying this was the case boosted the pound.
The European Union on Thursday launched legal action against the UK’s new Internal Market Bill on the grounds that it breached the Brexit Withdrawal Agreement and breaks international law.
The Confederation of British Industry urged the UK government to try to reach an agreement with the European Union on trade post-Brexit to avoid further economic challenges.
The pound rose against both the euro and dollar on Monday morning as the final round of Brexit trade negotiations geared up in Brussels.
UK ministers warned on Wednesday that a worst case scenario post-Brexit transition period would see queues of as many as 7,000 trucks in Kent.
JP Morgan will become one of Germany's biggest banks when it moves about €200bn (£184bn) of assets from the UK to Frankfurt because of Brexit, Bloomberg reported.
The City regulator has warned many people could struggle to get access to cash after Covid-19 intensified pressures on banks' branches and ATM networks.
The resumption of trade talks between the US and the UK later this week will come at a pivotal moment for London as it tries to establish its future relationship with the European Union.
David Cameron has become the third former Tory prime minister to express concerns about the government's proposal to break international law over Brexit - though in weaker terms than John Major and Theresa May.
Credit ratings agency Fitch has changed its outlook and now believes the UK with leave the European Union without a trade deal in place, it emerged on Wednesday.
Scotland and Wales warned on Wednesday that the new internal market bill that was proposed by the British government will undermine the UK’s unity as it will steal power from Scotland, Wales and Northern Ireland.
The pound dropped sharply on Tuesday, after reports that one of the government’s most senior legal experts had resigned over Downing Street proposals to challenge parts of the 2019 Brexit Withdrawal Agreement.