There is no new agreement between Spain, Netherlands on British departure

  • There is no new agreement between Spain, Netherlands on British departure

There is no new agreement between Spain, Netherlands on British departure

Sterling's rally came after news that European countries Spain and the Netherlands would be open to the United Kingdom having a softer Brexit.

The pound also climbed against the euro (GBP/EUR), reaching highs of 1.1291.

"Both have close trade and investment ties and are concerned about the impact of tariffs".

Earlier today, there were reports that Dutch and Spanish finance ministers have agreed to work together to push for a Brexit deal that keeps Britain as close to the European Union as possible (see post).

However, while the two finance heads reiterated the importance of British ties for both countries, and agreed to look out for each other's shared interests they also offered their full support to Michel Barnier with negotiations, a Spanish economy ministry official said.

The currency had been trading at about $1.50 before the result of the referendum became clear.

New York USA £258 per night
Getty Images New York USA £258 per night

Meanwhile, the euro hit a three-year high against the US dollar (EUR/USD) when German coalition talks appeared to make a breakthrough.

Nomura currency strategist Jordan Rochester said he was unconvinced by the reports.

Analysts said the weakness of the dollar had also boosted the currency.

Sterling has jumped to its highest level against the United States dollar since the Brexit vote. "I doubt it's as straightforward as that", he said.

"Although the comments came from just two ministers who don't necessarily speak for the Barnier team as such, there is a sense that the direction of travel for the United Kingdom with regards Brexit is a lot more positive than it was prior to December", he added.

The fall in the pound following the European Union referendum pushed up import costs, which in turn boosted consumer prices and caused to increase.