European Commission President Jean-Claude Juncker rejected a key plank of the U.K.’s post-Brexit blueprint, saying that Britain can’t stay in “parts” of the bloc’s single market. Still, he said he would work "day and night" for a divorce deal, boosting the pound.
The pound erased losses as investors focused on the positive tone of Juncker’s comments. But his message about what kind of future relationship the U.K. can expect with the bloc was unchanged. Speaking at his annual “State of the Union” address to EU lawmakers, he ruled out U.K. Prime Minister Theresa May’s plan to stay in the single market for goods while going it alone in services.