British pound inches up backed by Brexit ‘decisive steps’

On Monday, the British pound managed to inch up, reacting to news that so-called 'decisive steps' had been carried out between the European Union and Great Britain on the Brexit transition deal.

The currency pair GBP/USD hit 1.4068, tacking on 0.90%.

The UK currency hit 4-week maximums on Monday afternoon because the both parties delivered a press conference suggesting the considerable progress.

A fresh variant of the draft withdrawal bill for Brexit was jointly released by the EU and Great Britain and uncovered at a joint press conference headed by the European Union’s chief Brexit negotiator Michel Barnier as well as Britian’s Brexit secretary David Davis.

As the pair states, in December on Phase 1 points negotiated a complete agreement had been reached on the financial settlement as well as citizens' rights. Nevertheless, there’re some issues left, having to do with the Irish border.

EU citizens coming to Great Britain during the transition period are going to obtain the same rights as those who come to this country before the March 30, next year.

Intense negotiations on the Irish border are going to burst out in the nearer weeks.

The upcoming EU Summit will be held on Thursday and also on Friday, where the leaders of the 28 European countries including British Prime Minister Theresa May, are going to meet to talk about the Brexit transition.

On Friday, Michel Barnier is expected to roll out the draft agreement to the European Council for official approval.

Following the report, the currency pair EUR/GBP headed south 0.82% showcasing an outcome of 0.8747.

The UK currency managed to make considerable gains versus safe haven currencies. The currency pair GBP/JPY tacked on 1.12% being worth 149.46, while GBP/CHF rallied 0.93% reaching 1.3399.

Market participants are going to watch British data this week, including inflation numbers on Tuesday as well as a wages report on Wednesday.