By Yasin Ebrahim
Investing.com – The pound moved higher against the dollar Monday on rising expectations the EU and UK will agree on a trade deal, with Goldman Sachs (NYSE:) forecasting both parties “likely” to reach an accord by early November.
rose to 0.34% to $ 1.2974.
Hopes for an agreement on a post-Brexit trade deal were boosted on reports EU chief negotiator Michel Barnier aims to hold talks with European coastal states to get more freedom to negotiate terms with the U.K. on fisheries, a key sticking point that has held back progress.
The sense of urgency comes just days after Prime Minister Boris Johnson and European Commission president Ursula von der Leyen, agreed to intensify Brexit talks to close “significant gaps” that stalled progress on talks.
The joint statement drew a bullish call from Goldman Sachs, urging clients to buy sterling.
“A joint statement issued on Saturday constituted a clear political signal that enough had been achieved to further intensify technical talks,” Goldman said.
The bank, however, did not completely take the prospect of a no-deal Brexit off the table, saying “perceived probability of ‘no deal’ will persist beyond the next European Council meeting in mid-October.”
Without an agreement, the UK is set to leave the EU with no deal when the transition period ends on 31 December.
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