Pound Soars to 2018 High on Brexit Optimism, Dollar Weakness

  • Sterling extends advance against dollar to as much as 0.7%
  • Traders on edge this week as U.K.-EU negotiations intensify
Brexit Negotiations Hit Last-Minute Snag
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The pound rallied on mounting speculation that Britain and the European Union are closing in on a Brexit trade agreement.

Sterling advanced as much as 0.7% to $1.3539, reaching its strongest level since May 2018 with the help of broad dollar weakness, before paring gains. Traders’ sensitivity to Brexit-related headlines is heightened, with the cost of insuring a sudden swing in the pound against the euro climbing to the highest level since March.