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According to a tweet by MNI’s Anthony Barton, the investment banking giant Morgan Stanley believes the UK and European Union (EU) have moved closer to a Canada-style Brexit trade deal.

“The recent Brexit-related newsflow suggests that Britain and the European Union have found a way forward on the level playing field (LPF). We again confidently expect a Canada-style deal, and see just a 20% chance of the talks breaking down & a WTO outcome,” Morgan Stanley said.

LPF is a trade-policy term for a set of common rules and standards that prevent businesses in one country from gaining a competitive advantage over companies operating in other countries.

GBP/USD is currently trading near 1.3445, representing a 4% gain on a quarter-to-date basis.