[ad_1]
LONDON – The British pound surged against the US dollar on Wednesday, following a report suggesting that Germany would have agreed to an important compromise with the UK during the Brexit negotiations.
Bloomberg reported, citing unnamed sources, that German officials are ready to "accept a less detailed agreement on the future economic and trade relations of the United Kingdom with the EU in order to reach an agreement on Brexit". ".
Although Germany does not represent the entire EU, as the bloc's main economy, and its de facto leader, its position is extremely influential.
The news has supported investors in the pound, as it should be seen as a major concession of Germany, which was previously heavily focused on the details.
Thus, the pound rose nearly 1% against the dollar the same day if it remained below the significant psychological level of $ 1.30 and remained very moderate in historical terms. At 14:40 BST (9:40 am ET), the British pound rate was $ 1.2968, a gain of 0.88% over the day.
"The GBP in dollars shows how much he is more sensitive to good news than bad news," said Viraj Patel, a foreign exchange strategist at the Dutch bank ING. said in a tweet shortly after the move. "May not last (as after Barnier), but dips make the pound attractive"
He added: "The more positive Brexit titles we get, the harder it will be to ignore GBP bears."
[ad_2]
Source link
