Sterling rises on Davis' speech

Market Reports | Economy | Markets 12/1/2016, 12:55 PM
Sterling rises on Davis' speech

The British pound rallied during the afternoon trade on Thursday after the country's Brexit secretary David Davis told Members of Parliament the United Kingdom would consider making contributions to the European Union budget even once it leaves the bloc.

Davis said the government would not rule out such contributions after Brexit if that means it would be able to secure "the best possible access for goods and services" to the European market. This has pushed the currency up to its highest level against the greenback in almost a month. At the moment, the U.K. is one of the biggest net contributors to the EU budget, paying around £8 billion net a year, but post-Brexit depreciation of sterling made the country's EU membership even more expensive.

The pound climbed 0.60% against the euro to go for 1.1876 at 12:51 p.m. CET and soared 0.88% versus the United States dollar, changing hands at 1.26194. It gained 0.49% against the Swiss franc and 0.79% compared to the Japanese yen.

TeleTrader Newsroom / IB



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