GBP rose against most other major currencies in the European session on Wednesday, supported by reports that the UK will continue negotiations with the EU on their future relationship beyond the October 15 deadline, imposed by the British Prime Minister (PM) Boris Johnson. According to a source close to the negotiations, the UK's PM Johnson will decide whether to end talks after the EU leaders meet on Thursday and Friday for a summit. It also added that UK's officials still believe the deal with the EU is possible as long as both sides enter into a period of intense negotiation in the coming days.

The UK's Prime Minister Boris Johnson and the head of the European Commission, Ursula von der Leyen, will discuss the progress of the Brexit talks later today. Earlier, Johnson threatened to walk away from the negotiations if there was no clear progress by the EU leaders' summit on October 15.

The top Brexit negotiators of the EU and the UK, Michel Barnier and David Frost, acknowledged earlier this week that they are moving towards the deal, but important gaps remain on level playing field issues, fishing and governance.

The EU 27 leaders are reportedly to conclude at their two-day meeting in Brussels that progress in talks with the UK is “still not sufficient” for an agreement to be reached.