British Pound Sterling, on Monday, March 13, against the dollar, as investors expected Britain’s lower house of parliament to over-ride the upper house’s changes to Brexit legislation.
The pound was up 0.4 percent at $1.2222, with May expected to trigger Article 50 as early as Tuesday.
The pound was also supported by dollar weakness at the start of a week in which the U.S. Federal Reserve is expected to raise interest rates, CIBC World Markets currency strategist Jeremy Stretch said.
Sterling rose 0.3 percent to 87.45 pence per euro, rebounding from an eight-week low of 87.86 pence touched in early European trade.
The bill that will give Prime Minister Theresa May the power to trigger Article 50, notification that Britain will begin a two-year period of exit negotiations, is expected to complete its passage through parliament this week.
A loss of momentum in the euro after it rallied last week on speculation the European Central Bank could raise rates before the end of the its stimulus programme, also benefited sterling, Stretch said.
Sterling weakened against the dollar after both votes, as they heightened investors’ uncertainty surrounding the start date for Britain’s divorce talks with the EU.
Britain is drawing up contingency plans for the event it has to walk away without a deal, Brexit minister David Davis said on Sunday.
