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A trade deal between the European Union and the United Kingdom is imminent and may come as early as Wednesday, Reuters reported, citing a senior EU diplomat with knowledge of latest developments.

“EU member states would have to approve a provisional application of the deal with effect from Jan. 1 because there is not enough time for it to be ratified by the European Parliament,” the diplomat further told Reuters.

Market reaction

The British pound continues to gather strength against its rivals. As of writing, the GBP/USD pair was up 1.2% on the day at 1.3523 and the EUR/GBP pair was losing 0.75% at 0.9032.