The GBP is trading just below the highest level seen in 30 months early on Friday after Britain and the EU finalized the post-Brexit trade deal, just in time for the end of the transition period. At the time of writing, GBP/USD is trading around 1.353.

News of the Brexit deal being signed sent the GBP soaring against its major peers – US dollar, Euro and Japanese yen, despite some markets being closed for Christmas. Although the scope of the present trade deal is narrower than previously anticipated, it helps both Britain and EU avoid tariffs and quotas on imports and exports.

The issue of access to the financial sector has not yet been resolved even though the trade agreement will prevent a chaotic, no-deal Brexit scenario – one of the biggest fears that markets have had over the past few years. Negotiations on access to financial markets as well as on the issue of data adequacy could last several months.

Addressing a news conference after the deal was finalized, European Commission President Ursula von der Leyen remarked, “It was a long and winding road. But we have got a good deal to show for it. It is fair, it is a balanced deal, and it is the right and responsible thing to do for both sides.”