Rees-Mogg's hint of Brexit backing for May's plan helps boost sterling

Sterling jumped on hopes that hardline Brexiteer Jacob Rees-Mogg would, after all, throw his weight behind Theresa May’s Brexit withdrawal deal.

The leader of the European Research Group, which with the DUP has long rallied opposition to Mrs May’s border backstop deal, hinted at a new tack.

The pound gained around 0.3% to trade at 85.39 pence as MPs prepared to start voting on a number of indicative motions to ascertain whether the UK can strike some sort of consensus from the deep political divisions of Brexit.

A stronger pound favours Irish firms selling into the UK.

“Markets have taken the goings-on in parliament in their stride, more or less, especially now that no-deal is apparently off the table, but the current chaos hardly adds to the attractiveness of UK assets,” said IG’s Chris Beauchamp.

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