A Brexit deal has been reached during a special European summit over the weekend. Although the UK Parliament will still need to vote on the agreement, the British Pound currencies are very likely to gap up at the forex market opening tonight.
Brexit Deal Reached During Special Summit
The Brexit deal was reached on Sunday during a special European summit. However, as mentioned above the UK Parliament must still vote on it. There is likely to be additional volatility on both the Euro and British Pound currencies. In the last few months, the British Pound has moved in excess of 100 pips on any news of a deal or no-deal. It would not be unusual to see the British Pound currencies gap up dramatically at the market opening. Additionally, the UK Parliament is expected to vote on the agreement before Christmas and any news on whether the Parliament will accept or reject the deal will also cause extreme volatility for these currencies.