European session review: GBP strengthens on hopes for trade deal between UK and EU

GBP rose against its major rivals in the European session on Wednesday as the latest comments from the UK and the EU's leaders indicated that a Brexit trade deal could be agreed made in the coming days.

The UK's Prime Minister (PM) Boris Johnson said on Wednesday that he has "every hope" of a post-Brexit trade deal being done. He, however, added that the UK will prosper, whatever happens.

Earlier today, the European Commission's (EC) President Ursula von der Leyen told the European Parliament that the UK and the EU's negotiators "have found a way forward on most issues but two issues remain outstanding: the level playing field and fisheries". She added that “there is a path to an agreement now” and "the next few days are going to be decisive." Von der Leyen's comments heightened hopes for a Brexit deal being reached by the weekend.

Meanwhile, Reuters reported that a UK source, commenting on von der Leyen's remarks, said that the two sides made some progress but are still very far apart in key areas.

Germany's chancellor Angela Merkel also acknowledged that some progress was made in the latest round of trade talks but noted that the negotiators haven't been able to make a breakthrough yet. She also added that the negotiations will continue until the end of this week.