The British pound saw its gains ease a little on Thursday against the dollar and the euro after the announcement of a post-Brexit trade agreement between London and Brussels.

Around 3:05 p.m. GMT (4:05 p.m. in Paris), the pound gained 0.55% against the euro, at 89.86 pence for one euro, and 0.54% against the dollar, at 1.2567 dollars for one pound.

London and Brussels have finalized the post-Brexit trade deal they have been negotiating for ten months. It is a "good, balanced" and "fair" agreement for each party, said European Commission President Ursula von der Leyen.

As the post-Brexit transition period draws to a close on December 31, leaving the European Union without a deal would have been disastrous for the UK economy.

But the movement of the British currency remained limited after the official announcement, the investors having amply anticipated and betting for weeks on the conclusion of a compromise before the end of the transition period.

Against the dollar, the pound is moving close to its strongest level since April 2018, reaching 1.3624 dollars per pound on December 17.