The pound was one of the best performers of the day, rallying around 0.70% on Monday from 1.3067 to a high of 1.3164, a level not witnessed since the start of August. The main catalyst for the move was on the back of hopes that there was progress being made in the Irish border Brexit question. The Times newspaper reported yesterday that the EU was prepared to accept a frictionless Irish border post Brexit which increases the probability of a withdrawal agreement deal by the end of the year.
Looking ahead, The Prime Minister is set for another round of Brexit negotiations this week and the pound has shown various occasions in the past couple of weeks that it remains highly sensitive to Brexit headlines. There’s no UK economic data due for release.