The pound initially declined against the euro and US dollar on Friday morning as news of the Brexit divorce deal was announced, but quickly recovered.

Sterling declined by just 0.004 against the Euro and by 0.0057 against the dollar.

The currency began to recover from the moves however, trading at €1.1478 and $1.3470 as of 09.47am GMT.

It came as confirmation of a deal between Britain and the European Union was finally announced.

After a pre-dawn meeting in Brussels, the Prime Minister joined European Commission President Jean-Claude Juncker in announcing the breakthrough.

Juncker announced that “sufficient progress” had been made in the talks to allow both sides to move onto discussions of a future trade deal between the UK and EU after 2019.

May said the deal “had required give and take on both sides” and after “some tough negotiations” she had agreed the ‘divorce bill’, which is expected to total up to £50bn.

She also guaranteed rights for EU and UK citizens, including a continuing, time-limited role for the European Court of Justice, and new words on the crucial issue of Northern Ireland.

“I’m confident that we can ensure we both won’t have a hard border in Northern Ireland but will retain the economic integrity of the United Kingdom,” May said.

“In Northern Ireland we will guarantee there will be no hard border.  We agreed…there should be no barriers north-south or east-west.”

With reporting from Paul Waugh.

Follow our live blog for the latest updates as the Brexit divorce deal is agreed.