The British pound and FTSE 100 futures experienced a significant rally following reports that U.S. President Donald Trump is expected to announce a trade agreement between the U.S. and the UK later on Thursday.
Trump hinted at the announcement of a “major trade deal” in a social media post on Wednesday evening. Subsequent reports confirmed that the country involved in the deal was the UK. As a result, sterling saw a sharp rise, gaining momentum in anticipation of the announcement.
Market participants are closely watching the developments, with traders hoping that the trade pact will provide a boost to the UK economy as they await the Bank of England’s (BOE) decision later in the day.
The FTSE 100 index also saw a positive uptick as investor sentiment strengthened in line with the optimism surrounding the potential trade deal.
