GBP rose against its major rivals in the European session on Monday amid renewed hopes for potential breakthroughs in trade negotiations between the UK and the EU. 

The British Prime Minister (PM) Boris Johnson and the European Commission's (EC) president President Ursula von der Leyen agreed to extend talks on the post-Brexit trade relations despite a Sunday deadline. This renewed bets that the UK and the EU's negotiators can make a deal before Britain leaves the bloc on December 31. 

Von der Leyen said on Monday that the two sides are on the very last mile in negotiations and reiterated that the EU wants a level playing field. Meanwhile, the EC's spokesman Daniel Ferrie said that that the EU is "fully dedicated to trying to reach a deal with the UK".

In addition, the EU's chief Brexit negotiator Michel Barnier sounded more upbeat about the prospects of a deal with the UK. “It is our responsibility to give the talks every chance of success,” Barnier tweeted, adding that "the next few days are important". He also noted that “fair competition, and a sustainable solution for our fishermen and women, are key to reaching a deal.”