Sterling steadied on Tuesday after a senior European Union legal adviser said Britain could unilaterally withdraw its Brexit notice, easing some concern among investors about Britain crashing out of the bloc in March without a deal.
The advice from a European Court of Justice advocate general is non-binding but the prospect of a route out of the Brexit process cheered the market, even as Prime Minister Theresa May pressed ahead with plans for a parliamentary debate on her divorce deal with the EU.
The pound had spiked to a day’s high of $1.2840 versus a broadly weak dollar before relinquishing its gains to trade flat at $1.2734. Against the euro it rose 0.1 percent at 1640 GMT to 89.17 pence.
Source : Reuters