Pound Jumps as U.K., Germany Said to Drop Key Brexit Demands
- Nomura favors pound versus euro as hard Brexit risk overpriced
- Hedge-fund selling caps sterling’s rise toward $1.30: trader
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The pound rallied after the British and German governments were said to have abandoned key Brexit demands to potentially ease the path for the U.K. to strike a deal with the European Union.
Sterling shrugged off earlier weakness to climb toward $1.30, with the move capped on selling by hedge funds. Germany is ready to accept a less detailed agreement on the U.K.’s future ties with the EU in a bid to get a Brexit deal done, while the U.K. is also willing to settle for a vaguer statement of intent, according to people familiar with the matter who declined to be named.