- Sterling climbs to its highest level since the Brexit referendum on Friday.
- Hits a high of 1.3693 against the dollar.
- Bloomberg report that Spanish and Dutch finance ministers have agreed to work together to push for a Brexit deal that keeps Britain as close to the European Union as possible appears to be the catalyst.
LONDON – The pound climbed to its highest level since the Brexit referendum in June 2016 on Friday after reports that two eurozone finance ministers are lobbying for a soft Brexit deal that allows the UK to keep close ties to the EU once Britain leaves the bloc.
Bloomberg reported on Friday afternoon that “Spanish and Dutch finance ministers have agreed to work together to push for a Brexit deal that keeps Britain as close to the European Union as possible.”
That news pushed the pound sharply higher, with sterling climbing as high as $US1.3693 against the dollar. By 2.15 p.m. GMT (9.15 a.m. ET) it has pulled back a little, but remains close to 1% higher on the day, as the chart below illustrates:
Earlier on Friday, analysts at Nomura argued that the pound could climb as much as 4% to trade at 1.40 against the dollar if a second Brexit referendum is announced within the next year.
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