Sterling has risen more than 1.2 percent following the leak of a text which outlines the future relationship between the European Union and United Kingdom.
The draft text is now being pored over by representatives of the EU’s 27 remaining members. If agreement can be found, the heads of state will sign off on the document on Sunday.
Donald Tusk, the president of the European Council — a body that represents the 27 Heads of State — confirmed in a tweet that the text had been agreed in principle by negotiators.
Sterling hit a five-day high versus the U.S. dollar after the text was pushed into the public domain. Reacting to the pound’s increase in value, the FTSE 100 has hit a session low.
One key statement within the text is the declaration that both parties have “a trading relationship on goods that is as close as possible.”
The U.K. Prime Minister Theresa May spoke outside Downing Street on Thursday, confirming that the text had been agreed with the EU and claimed the full deal is “within our grasp”.