Sterling zipped sharply higher on Monday after the EU’s top Brexit negotiator said it would be “realistic” for a deal to be forged by early November.

Michel Barnier said a pact could be struck in six to eight weeks, according to a tweet by the British embassy in Slovenia. That aligns with late October or early November.

Sterling jumped as much as 0.73 per cent following the report, leaving it up 0.9 per cent on the day at $1.3035 against the US dollar. It climbed 0.38 per cent on the day against the euro to €1.1225, while the euro also extended its gains against the dollar.

“I think that if we are realistic we are able to reach an agreement on the first stage of the negotiation, which is the Brexit treaty, within 6 or 8 weeks,” Mr Barnier said, according to an excerpt broadcast by Sky News and reported by Reuters.

“Taking into account the time necessary for the ratification process, the House of Commons on one side, the European Parliament and the Council on the other side . . . we must reach an agreement before the beginning of November. I think it is possible.”

The pound has come under pressure since reaching highs above $1.40 in April amid rising concern over the spectre of a no-deal Brexit. But a series of more upbeat headlines have helped it to recover to some extent, although it is still down 3.6 per cent for the year to date.

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