For the first time since March, GBP has broken through $1.27
GBP on Friday rose above US$1.27 and was set for the biggest weekly gain against the US dollar since late March.
The transitional agreement, which preserves the parties' previous trading rules for the duration of the negotiations, will expire at the end of 2020 unless both parties agree to extend it this month, which the UK says it will not.
The British pound, which rose by more than 3 cents over the week, rose to US$1.2705, the strongest level since March 12.
The pound rose by 5% against the dollar since it reached its low of $1.2075 in mid-May. The rally was held back by high coronavirus mortality rates in the UK, risks associated with Brexit, the prospect of negative interest rates and rising debt levels.