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flag The pound surged to its highest level since mid-September amid improved investor confidence and signals of closer UK-EU ties.

flag The British pound hit its highest level since mid-September against the dollar and euro on Tuesday, reaching $1.3536 and 86.44 pence per euro, driven by improved global investor sentiment, reduced concerns over UK fiscal and political risks, and signals of potential closer UK-EU economic ties. flag Despite stable interest rates between the UK and eurozone, the pound strengthened due to broader market optimism, low volatility, and the appeal of carry trades. flag Recent tax increases and Prime Minister Keir Starmer’s comments on EU cooperation boosted confidence, while weaker UK services data had little impact. flag The dollar later regained some ground, but the pound remained strong, with markets awaiting upcoming U.S. jobs data for further policy clues.

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