The pound will remain at the mercy of Brexit sentiment in the run-up to a summit of EU leaders on June 28-29.
The latest example of sterling ebb and flow on Brexit news came Thursday, courtesy of a report in the Telegraph newspaper which said Britain will tell the EU it is ready to stay in the EU's customs union beyond 2021 nL5N1SN7OA.
The pound rose to a 20-day high against the euro on the back of the Telegraph report, before ceding those gains after a source in UK PM May's office dismissed the report nS8N1ME023.
On Tuesday, the British government said it would publish detailed plans for its future relationship with the EU next month, ahead of the EU summit nL5N1SM8WA.
Rebels within May's Tory party who favour a relatively "soft" Brexit, meanwhile, may be emboldened by a 15th defeat for May's government on Brexit legislation Wednesday nL5N1SN6FK.
A relatively "soft" Brexit would be positive for the pound--which is 15% below its Brexit referendum day high against the euro (1.3150).
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