U.K. Pound Hits Highest Level Against the Dollar Since Oct. 6 'Flash Crash'

The U.K. pound traded at its highest level against the dollar since the so-called 'Flash Crash' in early October as investors extend bets of a possible compromise in the country's Brexit negotiations with the European Union.

The pound has spiked around 1.5% Thursday, taking the currency to 1.2691 against the greenback, its highest level since Oct. 6, when sterling plunged more 6% in the space of two minutes during trading in Asia. The move also follows the currency's best month against the euro since the global financial crisis.

Earlier Thursday, Conservative Member of Parliament David Davis, charged with leading the country's EU negotiations on behalf of Prime Minister Theresa May, told lawmakers that Britain might consider a Brexit option that includes paying into the EU budget in exchange for access to the European single market, the world's biggest economic bloc.

"The simple answer we have given to this before is, and it's very important because there is a distinction between picking off an individual policy and setting out a major criteria, and the major criteria here is that we get the best possible access for goods and services to the European market," Davis said. "If that is included in what you are talking about then of course we would consider it."

The suggestion reflects the views of some of the U.K.'s biggest supermarkets, who Thursday joined the National Farmer's Union in urging the government to seek access to the single market after it leaves the EU.

Marks and Spencer (MAKSY) , Sainbury's (JSAIY) and Morrisons (MRWSY) are among the 75 signatories from the food producing industry calling for continued access to labor and "best possible single market access after Brexit." Food producers and farmers fear that a Brexit deal that does not allow foreign workers could significantly raise costs.

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