Sterling gained on Monday on signs some pro-Brexit lawmakers were increasingly willing to compromise with Prime Minister Theresa May, increasing the chances the British leader will get her Brexit deal through parliament next week.
Sterling rose 0.4 percent against the euro to 85.705 pence.
Versus the dollar, the pound added 0.2 percent to $1.3235. Last week sterling hit as high as $1.3351 as investors piled back into the currency in the belief a disorderly no-deal Brexit was far less likely.
While Brexit negotiations dominate the headlines, concerns about a slowdown in the British economy continue to build.
Source : Reuters