Pound to dollar exchange rate: Sterling jumps as Brexit future relationship between EU and UK is 'agreed'

The pound jumped today as a draft agreement on Britain’s future trade and security relationship with the European Union was finally agreed by negotiators.

A 26-page text of the political declaration, which is due to be formally signed at a summit on Sunday, was leaked from the EU showing agreement in a series of areas.

In a tweet confirming that a deal was ready to be signed off, European Council president Donald Tusk said: “I have just sent to EU27 a draft Political Declaration on the Future Relationship between the EU and UK.

"The Commission President has informed me that it has been agreed at negotiators’ level and agreed in principle at political level, subject to the endorsement of the Leaders.”

The 147 paragraphs, which will not be legally binding, include potential trouble for Theresa May by including a commitment to refer disputes over the meaning of EU law to the European Court of Justice “for a binding ruling”.

But there was also a sop to Brexiteers worried about the Irish border backstop.

The text agrees that new technology will be investigated to see if it could allow smooth trading to continue without a hard border, even if Britain later adopts different rules to the EU.

The pound was up one per cent against the dollar and 0.69 per cent against the euro.