Pound Rallies After Diplomats Say Divorce Deal Could Be Settled Soon

(Bloomberg) -- The pound rallied as diplomats reportedly said the terms of Britain’s divorce from the European Union could be settled by Monday.

The report by the Wall Street Journal came after headlines Monday suggested progress may not be on the horizon, with Prime Minister Theresa May’s spokesman sounding a note of caution and the two sides looked set to miss a Wednesday deadline to agree an outline of their future relationship.

“Whilst these are good headlines and there may well be some negatives ones in the pipeline too, it’s all about the direction of travel for us,” said Jordan Rochester, an analyst at Nomura International Plc. “All signs so far point to less gridlock, more fudge and small steps of progress. We’re long the pound versus the euro and the Swiss franc.”

The pound gained 0.4 percent to $1.3138 as of 4:42 p.m. in London. It also strengthened 0.4 percent to 87.42 pence per euro.

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