EU prepared to agree UK-wide customs union - report
The pound popped up on Tuesday afternoon after reports emerged that the European Union is prepared to accept the creation of a UK-wide customs union.
The Withdrawal Agreement will include a specific commitment to arranging a UK-wide customs as part of a separate treaty, Ireland's RTE reported.
Both the EU and the Irish government require a backstop agreement to cover the border with Northern Ireland, even if a separate UK-wide customs arrangement is negotiated.
Theresa May told MPs on Monday that she will not accept any final deal that creates a customs border in the Irish Sea.
Last week the Prime Minister raised the possibility of removing the time limit on the Irish border backstop option, to dismay from Brexit supporters, and this week admitted that the issue of the Irish border was still the chief stumbling block in "95% complete" Brexit negotiations.
Removing the time limit was an about-turn for the government, having previously insisted that if Northern Ireland or Britain as a whole were aligned with the EU without a fixed end-date it might harm opportunities to sign new trade deals with other countries.