The Pound has jumped against the major currencies this morning, offering an excellent opportunity for those looking to purchase a foreign currency with Pounds.

Reports this morning are suggesting that the UK is willing to offer the EU a “divorce” settlement of €50bn. While these early reports are indicating that an agreement on the final figure is close, no agreement on the amount has been confirmed, although it is thought the offer of €50 billion has been well received in Brussels. If a final Brexit settlement figure can be agreed by the middle of December then it may allow the UK and EU to swiftly move on to the next phase of Brexit talks, which should include the important trade discussions. This would be a massive boost for the Pound as the deadlock over Brexit negotiations in recent months has weighed heavily on the Pound’s value.

Following the news Sterling made gains against all the major currencies, rising against the Euro, US Dollar, Australian Dollar, the New Zealand Dollar and the South African Rand. The GBP/EUR rate reached a high of 1.1315, while the GBP/USD exchange rates and the GBP/AUD rates climbed to 1.3430 and 1.7695 respectively. This is welcome news for anyone selling Sterling and will ease concerns for investors that a trade agreement can be reached, meaning a “no deal” Brexit might be off the cards, which is expected to be positive for Sterling.

Volatility expected ahead of EU Summit in mid-December

It now looks likely that there will be a volatile few weeks ahead before the EU summit on the 14-15th December. This EU Summit will see the 27 members of the European Council review the latest developments in the Brexit negotiations, where leaders will discuss the current progress in the negotiations to determine whether sufficient progress has been achieved on three specific issues: citizens’ rights, the Irish border and the financial obligations. It is hoped that at this point the Brexit “divorce” offer will be accepted and then phase 2 of the negotiations can commence in the new year.