Pound Rallies To Almost 3-month High Against Euro On 'soft' Brexit Hopes

Sterling jumped to an almost three-month high against the euro on Thursday on hopes the U.K. will retain access to the European Union's single market after Brexit. The pound rose to as high as €1.1910 from €1.1810 late Wednesday in New York, reaching its highest level against the shared currency since Sept. 7, according to FactSet. Against the dollar, the pound hit an intraday high of $1.2650 from $1.2506 on Wednesday. The gains came after Eurogroup President Jeroen Dijsselbloem reportedly said the EU may find a way to keep the U.K. in the single market after the country leaves the bloc. Additionally, Brexit secretary David Davis said the government may make contributions to the EU budget in return for access to the single market. Losing access to the EU market is a key concern among U.K.-based banks as it would likely mean they'll lose their key passporting rights that allow them to sell their services seamlessly across the union.

Copyright © 2016 MarketWatch, Inc.