British pound rallies to 2-month high on report of new support for May's Brexit deal

The British pound rallied to a two-month high against the U.S. dollar on Monday following a report from ITV that Conservative members of the European Research Group will vote in favor of Prime Minister Theresa May's Brexit deal on Tuesday. The ERG had previously been critical of May and were instrumental in forcing an unsuccessful leadership challenge against her in December. Parliament will vote on May's deal on Tuesday, following a day of deliberation and votes on amendments. The vote was initially meant to take place in December but was postponed as May was expected to lose. Passing her deal would ensure a so-called soft Brexit from the European Union in March. Sterling shot up to a high of $1.2931 on the back of the report, its highest since mid-November, but has since drawn back slightly. One pound last bought $1.2885, up from $1.2839 late Friday. The euro was down 0.3% against the pound, buying £0.8900.

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