LONDON (Reuters) – Sterling rose in early London trading on Wednesday as investors awaited a vote in Britain’s parliament that most expect will see the prospect of a no-deal Brexit defeated.
The pound, which has lurched upwards and downwards in volatile trading this week, has found some support despite Prime Minister Theresa May badly losing a vote on her Brexit withdrawal agreement late on Tuesday.
Britain’s parliament will vote again on Wednesday on whether the United Kingdom should leave the European Union on March 29 without a deal, which most economists say would cause significant harm to the economy.
May has given lawmakers in her party a free vote, and investors expect parliament will vote against a no-deal Brexit.
The pound rose 0.4 percent to the day’s high of $1.3120 at the London open – putting the currency about half way between this week’s lows of $1.2945 and its high of $1.3290.
Against the euro sterling was also stronger, hitting 86.020 pence but was below 22-month lows of 84.755 pence touched on Tuesday before hopes for May’s Brexit deal to pass were crushed.
(Reporting by Tommy Reggiori Wilkes; Editing by Dhara Ranasinghe)