Sterling Strong as Britain’s Officials Want to Avoid Hard Brexit

The Great Britain pound was strong on Friday, rising against its most-traded peers, as Britain’s officials were talking about possibility of keeping access to the single market of the European Union.

Trade Minister Greg Hands talked in an interview to Bloomberg about possibility for Britain staying in the EU customs union, at least for select products:


You can choose which markets, which products the customs unions affect and which they don’t — so there isn’t a binary thing of being inside the customs union or outside of the customs union. The history of international trade has got all kinds of examples of customs unions.

Brexit Secretary David Davis said that the United Kingdom may pay the EU for keeping access to its market. Such comments show that Britain’s officials want to avoid the hard Brexit, and this is helping the nation’s currency.

Of course, such plans are likely to face fierce opposition from politics both inside and outside of Britain, who may think that such concessions make the Brexit rather pointless.

GBP/USD rose 1.1% from 1.2589 to 1.2725 (the strongest level since October 6) as of 21:18 GMT today. GBP/CHF also climbed 1.1% from 1.2722 to 1.2860. EUR/GBP slid 1% from 0.8466 to 0.8378.

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