LONDON (Reuters) - Sterling gained half a percent versus the dollar and euro on Tuesday after Ireland's RTE News reported that the European Union may offer Britain a UK-wide customs union.
The pound rose from just below $1.30 <GBP=D3> to as high as $1.3044 after the report, up 0.6 percent on the day. It also jumped versus the euro to as much as 87.995 pence before easing back to 88.1 pence <EURGBP=D3>.
Reuters had reported on Monday that EU negotiators were looking at ways to promise Britain a customs deal.
Analysts said the EU offering a UK-wide customs union would show that the two sides were moving closer towards resolving their differences and reaching a Brexit deal, although such a proposal would not be popular among some of May's colleagues in her Conservative party.
May's spokesman also said on Tuesday that the British leader was confident she could get a Brexit deal that will win the support of parliament.a
(Reporting by Tommy Reggiori Wilkes; editing by Sujata Rao)
