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The U.K. and European Union signaled a Brexit deal is in sight, with negotiators heading into three days of intensive talks in Brussels.

On Friday, EU officials said that British Prime Minister Boris Johnson had indicated he was prepared to make sufficient concessions to allow detailed talks to begin. Teams from both sides will work over the weekend to explore whether they can arrive at the basis of an accord ahead of a summit of EU leaders that begins Thursday.

The pound posted its biggest two-day gain in a decade,…

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