Pound hits highest level since Brexit vote

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Peerless has jumped to its highest level against the US dollar since the Brexit opt.

The surge to almost $1.37 came after Bloomberg reported that the Spanish and Dutch business ministers had agreed to seek a Brexit deal that kept the UK as fast to the EU as possible.

The pound rose more than 1% to $1.3691, its highest flatten out since 24 June 2016.

The currency had been trading at about $1.50 earlier the result of the referendum became clear.

Later on Friday, sterling back away fromed up some ground to trade at $1.3666.

Mizuho analyst Neil Jones verbalized the Bloomberg report was less significant than the sterling rally offered.

“Just because two of the 27 members say this, it doesn’t mean a softer Brexit on happen. I doubt it’s as straightforward as that,” he said.

Neil Wilson at ETX Chief said: “Although the comments came from just two ministers who don’t willy-nilly speak for the Barnier team as such, there is a sense that the way of travel for the UK with regards Brexit is a lot more positive than it was last to December.

“We also have positive language around financial usages and the prospect of Britain paying for market access.”

Nomura currency strategist Jordan Rochester added: “I’m disbelieving this [report] is necessarily a game-changer at this stage as there bequeath also be member states pushing the other way.”

The pound was almost definite against the euro at €1.1262 after the single currency hit a three-year important against the dollar following hopes that chancellor Angela Merkel wish be able to form a coalition government in Germany.

“Sterling is benefiting from the dollar irresoluteness and the growing euro strength rather any pound-specific factors, which if anything fool been underwhelming this week,” said Alvin Tan at Societe Generale.

Some buyers are concerned that poor Christmas trading reported by several retailers this week was farther evidence of a consumer slowdown as inflation erodes spending power.

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