GBP rose against most of its major counterparts in the European session on Wednesday, supported by the announcement that France reopened its borders with the UK, which were closed on Sunday following news of an outbreak in southeast England of a new COVID-19 variant.

On Tuesday night, France and Britain reached a deal to restore rail, air and sea routes between the two countries on Wednesday morning. Under the agreement, truck drivers could travel to France if they were administered a rapid coronavirus test. Admittance to France will also be granted to those traveling for urgent reasons, EU citizens, and the UK's citizens with EU residency, who have gotten a negative coronavirus test result less than 72 hours before departure. The deal is to be reviewed on December 31.

In addition, investors continued to hope that the UK and the EU would be able to strike a deal before the end of the Brexit transition period on December 31, despite dismal comments on the talks from both sides. British Housing Secretary Robert Jenrick told Sky News earlier today that there remained "the same serious areas of disagreement whether that’s on fisheries or the level playing field". "At the moment there isn’t sufficient progress", he added. "It isn’t a deal that the prime minister feels he can sign us up to.” Ireland's Prime Minister Micheál Martin also acknowledged that the gap in the EU-UK trade talks was still wide on fisheries. But added that there should be a deal on balance.