Pound Jumps as Draft Post-Brexit Agreement Signals Deep Ties
- Sterling hits a week high as free-trade pact agreed in accord
- Markets still remain skeptical as U.K. Parliament vote looms
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The pound jumped as a draft accord between the U.K. and European Union backed a free-trade pact and close cooperation after Brexit.
Sterling gained more than 1 percent to a one-week high after the declaration removed some uncertainty about the relationship after the U.K. leaves the bloc, its largest trading partner. The statement on futures ties, being negotiated ahead of an EU summit on Sunday to sign off on a Brexit deal, also makes clear that both sides have a "determination" to replace the contentious backstop to avoid a hard border with Ireland.