2018.09.0511:03:00UTC+00Pound Advances On News Of Brexit Breakthrough

The pound strengthened against its major counterparts in the New York session on Wednesday, following a media report that Germany has indicated its willingness to offer a major compromise on Brexit deal, with an aim to clinch to deal in the coming months.

Germany is ready to "accept a less detailed agreement on the UK's future economic and trade ties with the EU in a bid to get a Brexit deal done," according to a report from Bloomberg.

The U.K. has also consented for a vaguer statement of intent on the future relationship and defer some decisions until after Brexit day, it said.

Final data from IHS Markit showed that the euro area private sector expanded slightly more than initially estimated in August.

The composite output index rose to 54.5 in August from July's 54.3. The score was marginally above the flash estimate of 54.4.

The currency was lower in the European session amid risk aversion.

The pound advanced to 5-day highs of 0.8956 against the euro and 1.2983 against the greenback, from its early weekly low of 0.9052 and more than a 2-week low of 1.2785, respectively. If the pound rises further, 0.88 and 1.32 are likely seen as its next resistance levels against the euro and the greenback, respectively.

The pound hit 6-day highs of 144.97 against the yen and 1.2625 against the franc, off its early low of 142.66 and a 1-year low of 1.2459, respectively. The next possible resistance for the pound is seen around 147.00 against the yen and 1.28 against the franc.