The pound hit its highest level since the referendum after reports that 2 EU finance ministers are pushing for a soft Brexit


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 $1.3693 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:

Screen Shot 2018 01 12 at 14.19.52Markets

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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