Sterling made gains shortly after 8am as investors kept their eyes on Brexit movements, which today will see Mrs May head to Paris and Berlin as she seeks support for another extension. As of 9.28am UK time, the pound had fallen back slightly to trade at €1.1595 against the euro and $1.3065 versus the US dollar. Connor Campbell, analyst at Spreadex, said: “With Theresa May set for a pair of Brexit pit stops in Paris and Berlin ahead of tomorrow’s hugely important emergency EU summit… the pound was pretty quiet. “Big movements may be saved for Wednesday evening or Thursday morning, when it’ll be clearer whether or not we are leaving the EU on Friday.”
The Prime Minister meeting with the German Chancellor and French President Emmanuel comes ahead of a crunch EU summit on Wednesday.
Mrs May will be looking for Mrs Merkel and Mr Macron to back an extension of the UK leaving the European Union, of which the current default position is for a no-deal Brexit to take place at 11pm on this Friday, 12 April.
All 27 remaining EU heads of government must agree to an extension if the UK is to be granted more time to negotiate terms of exiting the bloc.
Mrs May is expected to ask the EU for an extension to June 30 in order to get a deal through Parliament.
Meanwhile, a leaked EU27 memo has revealed the scenarios being considered by the Brussels bloc on how to deal with Brexit.
The memo details two proposals for the remaining EU heads of states to consider this week.
This is said to include an option to delay Brexit until May 22 if MPs can approve a withdrawal deal by this Friday.
The second scenario is a much longer extension, possibly to the end of 2019 or to March 2020.
As the Prime Minister heads across seas, her ministers will hold more crisis talks with Labour to try to break the Brexit deadlock.
Labour leader Jeremy Corbyn has called on the Government to be more flexible in the discussions.
Ahead of further talks today, Jeremy Corbyn said: “The Prime Minister has not yet moved off her red lines so we can reach a compromise.”
The talks with Labour sparked outrage from several Brexiteers.
Boris Johnson wrote in the Daily Telegraph: “In order to get Corbyn onside, the Government is apparently willing to abandon the cardinal principle and central logic of Brexit.
“If the UK were to commit to remaining in the customs union, it would make a total and utter nonsense of the referendum result.
“We would be out of the EU, but in many ways still run by the EU.
“It would be the worst of both worlds, not just now but forever.”