Sterling gains on belief UK will delay Brexit following likely defeat for May in Tuesday's vote

A boost for sterling as rumours swirled that a divided UK government would opt to stay longer in the EU to help it strike a deal, points to the upside for the currency, traders and economists have said.

A London Evening Standard report saying UK cabinet ministers were preparing to delay the Brexit process, or Article 50, helped boost the currency, as Tuesday's parliamentary vote on Theresa May's transition deal draws closer.