The book flies, driven by optimism about Brexit

The pound sterling was up sharply Friday, gaining even temporarily as the day before more than 2% against the dollar and reaching higher levels since May against the greenback and against the euro, in a context of optimism on the Brexit.

Around 19H00 GMT (21H00 in Paris), the pound sterling gained 1.74% against the greenback, 1.2660 dollar, and 1.43% against the euro, 87.22 pence for one euro.

It climbed up to 1.2707 dollars and 86.95 pence for one euro, unprecedented levels for five months.

Investors are encouraged by the hope of a possible resolution of the Brexit impasse, London and Brussels having agreed Friday to launch intensive negotiations to 20 days of divorce.

The pound had already recorded its best session since March by 1.9% against the dollar and 1.6% against the euro after British Prime Minister Boris Johnson and his Irish counterpart Leo Varadkar, had revived the hope of an agreement on Brexit.

With its new breakthrough on Friday, the book is "well on its way to making one of its best two-day footage for about 25 years," said Markets.com Analyst Neil Wilson.

Several analysts have however recalled that no concrete progress had taken place for the moment.

"Investors are obviously happy to take advantage of rumors and ask questions later," said Fawad Razaqzada, analyst for Forex.com.

For David Madden of CMC Markets, the "colossal" magnitude of the pound's rise also shows "how much fears of a Brexit without agreement were embedded in the price".

According to him, many people who preferred to stay away from the British currency return to the markets.

The euro, for its part, benefited from the optimism of investors on the subject of Brexit but also trade negotiations between the United States and China.

The single currency gained 0.35% against the dollar, at $ 1.1043.

"At the beginning of the week, the expectations were remarkably low on the probability that one or the other series of meetings would lead to a positive result, not to mention both, but Thursday could have been a turning point in both cases", said Craig Erlam, an analyst for Oanda.

Donald Trump posted his optimism Friday on the second day of trade negotiations with China in the US capital, saying that the atmosphere between delegations was "warmer" after months of stalemate.

"The US dollar, which currently plays the role of safe haven, is weakening in such an environment," said Thu Lan Nguyen, an analyst for Commerzbank.

"On the other hand, there are limits to the collapse of the dollar as expectations of lower rates fall at the same time," he said.

In case of intensification of the trade war, the Federal Reserve could indeed be tempted to lower interest rates to stimulate growth, which would also result in making the greenback less profitable and therefore less attractive to investors. traders.