Sterling gains as UK tries to soothe Brexit fears

Sterling gained for a second day yesterday as UK chancellor of the exchequer Philip Hammond said the government wanted to keep all options open as it exits the EU, fuelling speculation that there’s a possibility that the country may retain special access to the single market.

The UK government wants to “keep as many things on the table” as possible, Mr Hammond told MPs when questioned about the possibility of Britain leaving the EU customs union as a result of Brexit.

“Although Hammond is not giving anything away at this stage of his testimony, it gives the markets a glimmer of hope that the UK may not target a hard Brexit,” Kathleen Brooks, a research director at brokerage City Index in London, wrote in a note.