FXStreet reports that according to economists at Westpac, a Brexit deal appears to be imminent with only seven days remaining in the transition period.

“This time it really does appear that a deal will be struck just in time for Christmas.”

“If a deal does transpire on 24th December, GBP is likely to make further gains. GBP/USD is likely to push into a 1.37-1.40 range but potential for a more substantial move towards 1.4500 now seems unlikely given how positions exhaustion is so prevalent. Similarly, EUR/GBP is likely to slide below 0.9000 towards 0.8800 but scope for a shift to 0.8500 also seems unlikely.”

“Risks remain though. Contentious issues from either side could still derail negotiations. Also, once approved by UK Parliament and EU Parliament, the EU-27 nations need to ratify this and it could throw up surprise opposition to the deal and so create uncertainty about its sustainability and full implementation.”