Sterling currency rate climbs as Labour seeks amendment to prevent hard Brexit

The pound gained for the second day, breaking above $1.42 as the UK Labour party said it was seeking an amendment to key Brexit legislation to prevent Britain leaving European Union without a deal.

The pound gains 0.6% to $1.4212; it strengthens 0.1% to 87.32 pence per euro.

“News that Labour will table amendments to the EU withdrawal bill to prevent a hard Brexit if parliament rejects the outcome of the UK Brexit talks is being taken well by the market,” said Jane Foley, head of currency strategy at Rabobank.

“It means less chance of a hard Brexit.”

The amendment proposes that if the Brexit bill is rejected, MPs would pass a motion setting out next steps which would include sending ministers back to the negotiating table in Brussels. Yield on UK 10-year government bonds +2bps to 1.47%.