Pound jumps after UK, EU agree to divorce bill
Britain assumes liabilities worth up to 100 billion euros in reported deal
According to multiple media reports, Britain and the European Union have reached a breakthrough agreement on how much the UK will have to pay up for Brexit.
Citing several diplomats familiar with the talks, the Financial Times is reporting that the UK would assume EU liabilities worth up to 100 billion euros. The payments, however, may end up being less than half that amount, dispersed over many decades.
British Prime Minister Theresa May is expected to announce the deal formally next week as part of a broader deal that included other sticking points.
The pound jumped almost 1.0%, to as high as US$1.337, on the news that was originally reported in the Daily Telegraph Tuesday afternoon.
The settlement, if officially agreed to, opens the possibility that the EU will come to the table for discussions on an interim trade deal with the UK as early as next month. That goal was looking increasingly grim until this report.