01:03

The pound has slipped back a little in early overnight trading. It is buying $1.2322 at the moment after hitting a five-week high of $1.2353 after the chances of a no-deal Brexit receded slightly this week. Against the euro it is €1.1166.

But Neil Wilson, chief analyst at Markets.com in London, cautioned that the Brexit “pantomime” still had some way to run.

“The political situation remains very fluid and uncertain, making this trade very hard to call,” he said. “The only certainty is that the pound is exposed to a significant amount of headline risk and volatility as markets react to the news flow. That said, the trend right now is positive.”