Sterling signals Brexit deal optimism as Nissan opts to build new e-car outside Britain                

Investors betting that the EU and UK set to agree on free trade deal in coming days

EU's chief negotiator Michel Barnier

Sterling is surging against the euro in the clearest sign yet that investors are betting that the EU and the UK are set to agree on some sort of Brexit free trade deal in the coming days.

At 89.9 pence, the British currency reached its highest level since before the latest round of talks got under way, amid warnings from both sides to prepare for the devastating fallout of a no-deal.