Both countries denied the report but the currency continued to climb.
Spanish Economy Minister Luis de Guindos and his Dutch counterpart Wopke Hoekstra met earlier this week and discussed their common interests in Brexit, according to the person, who declined to be identified.
"Both have close trade and investment ties and are concerned about the impact of tariffs. We were there for a get-to-know-you meeting and we discussed the fact we both have strong ties with the United Kingdom and that it is in our interests that this is known", Gelinck said.
After the report, sterling traded up more than one percent on the day at $1.3692, its highest level since the Brexit referendum on June 24, 2016. The first phase of discussions between the Christian Democratic Union and the Social Democrats has gone well, inspiring investors and allowing the single currency to reach highs of 1.2154 versus the buck. It hit a low of $1.20 in January 2017.
Masashi Murata, currency strategist for Brown Brothers Harriman in Tokyo, said: "Market reaction to dollar-buying factors has been subdued, while market reactions to dollar-selling, have been more vivid". "I doubt it's as straightforward as that", he said.
Analysts said the rise in pound had been driven by the weakness in the dollar.
That news pushed the pound sharply higher, with sterling climbing as high as $US1.3693 against the dollar.
"Just because two of the 27 members say this, it doesn't mean a softer Brexit will happen".
The study, which was commissioned by London Mayor Sadiq Khan, suggests that should Britain leave the European Union without access to the single market it would lead to a huge fall in jobs and up to £50bn less in investment by 2030.
Combined with slowing wage growth, households are beginning to feel the squeeze as their disposable incomes start to fall.