Finance ministers from both countries reportedly keen to maintain the closest possible ties with EU and Britain

The pound has surged to its highest level against the dollar since the UK’s vote to leave the EU following reports that Spain and the Netherlands are willing to back a soft Brexit deal.

Sterling hit a high of $1.3691, a gain of almost 1.5 cents – more than 1% – after Bloomberg reported that the two countries were keen to maintain the closest possible ties between the EU and Britain, after Brexit.

A soft Brexit, while not officially defined, would keep Britain in either the single market or the customs union or both. It could be achieved along the lines of the Norway model (see EEA/EFTA) or via an FTA, but would require concessions on free movement, ECJ jurisdiction and budget payments. Brexiters do not consider a soft Brexit as really leaving the EU. See our full Brexit phrasebook.

Continue reading…