The pound reached a six-month high this weekend following the positive Brexit negotiations by Theresa May.
It was trading as high as €1.147 last week against the euro, and has dipped slightly to €1.137 today, similar to figures from early last week.
The increase comes after a Brexit deal was reached after an agreement of the divorce bill as well as regarding the Irish border.
EU leaders will meet later this week at the Brexit summit on December 14.
Jean-Claude Juncker stated at a press conference: “I will always be sad about this development but now we must start looking for the future, the future in which the UK will be and will remain a close friend and ally.
“The Prime Minister and I discussed the need for a transition period and we dedicated much of our meeting to the joint vision for a deep and close partnership.
“It’s crucial for us all that we keep working closely together. We will take things one step at a time.
“But today I’m hopeful that we are all now moving towards the second phase of these challenging negotiations and we can do this jointly on the basis of renewed trust, determination and with the perspective of a renewed friendship.
Theresa May has cited a “new sense of optimism” following the Brexit negations which has pushed forward in reaching the next phrase regarding the UK leaving the EU.
She will join the other 27 EU leaders in Brussels this Thursday at a summit to discuss future trade deals.
The divorce bill has been agreed to be between £35bn and £39bn, as well as discussing the Irish border and not going back to a hard border.
Further talks regarding the single market are expected later this week.
Laura Parsons, currency analyst at TorFX commented on the increase last week and what it could mean.
She stated: “GBP/EUR was driven above €1.145 despite better-than-forecast Eurozone growth data and the pairing could extend gains if it appears an accord will be reached in time for this week’s EU summit.
“UK industrial/manufacturing production, construction output and trade balance figures could also inspire pound movement before the weekend, as could the BoE’s 12 month inflation expectation report.
