Goldman Sachs said it had raised its estimate on the probability of a Brexit deal to 65 per cent from 60 per cent after Britain struck a new divorce agreement with the European Union that still needs British parliamentary backing.

The bank lowered its odds on “no deal” to 10 per cent from 15 per cent and left its odds of no Brexit happening at all unchanged at 25 per cent, it said, adding that it maintained its base case that Britain will leave the EU with a deal by October 31st.

Sterling edged higher on Friday ahead of the crucial vote on the deal in the House of Commons on Saturday. It was up 0.26 per cent against the euro and 0.27 per cent against the dollar at 11.15am.

European Union leaders unanimously backed a new Brexit deal with Britain on Thursday, leaving Prime Minister Boris Johnson facing a battle to secure parliament's support for the agreement if he is to take Britain out of Europe on October 31st. – Reuters