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The pound rose on Monday after plunging to a 10-year low against euro overnight on the back of increasing fears that the country will leave the EU without a deal.
Shock news on Friday that the UK economy shrank 0.2 per cent helped to drag sterling to its lowest level since the financial crisis but sterling gained 0.5 per cent on Monday morning from €1.073 to €1.079.
The pound was up 0.3 per cent against the dollar to $1.1.207.
Futures on US stock markets have fallen as fears increase about the effects of a trade war between the US and China.
Some commentators have also linked the falls to news that Hong Kong airport authorities have cancelled all flights after protestors swarmed the main terminal building.
Protestors are demanding the resignation of Hong Kong leader Carrie Lam. They also want democratic elections for a successor and a probe into the police’s use of force during the protests.
Troubled travel company Thomas Cook is in advanced talks to raise £150m from bondholders after making “progress” over the terms of a rescue deal, the Press Association reports.
The tour operator is looking to secure the cash injection on top of a £750m deal it has already agreed with Chinese firm Fosun to attempt to secure the future of the company.
Thomas Cook has suffered recently as a result of mounting debts, reporting a £1.2bn net debt in its half-year results in May.
With today’s rise in the pound the FTSE 100 is down 0.3 per cent today.
The FTSE 100 which is packed full of export-driven companies, typically falls when the pound strengthens.
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