Pound Jumps to Highest Since Brexit Vote on Hopes of Better Deal
- Spanish and Dutch said to want soft Brexit, boosting sterling
- Meaningful progress needed to sustain gains, says ING’s Patel
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The pound jumped to the strongest level since the Brexit referendum as Spanish and Dutch finance ministers were said to be working together for a deal that keeps Britain as close to the European Union as possible. Gilts declined.
Sterling rallied as much as 1.1 percent, the biggest intraday gain since mid-September, as the news rekindled optimism about the U.K. having continued access to Europe’s single market. Still, the rally was greeted with caution even by top sterling bulls, who said a more meaningful development is needed to maintain the currency’s strength.