The pound rallied after negotiators from the U.K. and European Union agreed to a draft text of a Brexit withdrawal pact that British Prime Minister Theresa May will present to her cabinet ministers on Nov. 14.
A spokesperson for May's office said she will hold a cabinet meeting on Wednesday afternoon "to consider the draft agreement the negotiating teams have reached in Brussels, and to decide on next steps," according to a report by Agence France-Presse.
The spokesperson added that cabinet ministers were also invited to May's office to read documents on the deal ahead of the cabinet meeting, The Guardian reported. Earlier reports said May individually met with her ministers on the night of Nov. 13.
Ministers were earlier briefed on the state of the Brexit talks and were reportedly told that a "small number of outstanding issues" still had to be resolved.
Irish broadcaster RTE reported that Britain and the EU agreed on a backstop solution that would prevent the return of a hard border between the Republic of Ireland and the U.K.'s Northern Ireland, which has been the major stumbling block in the Brexit talks.
The backstop comes in the form of a temporary U.K.-wide customs arrangement, with specific provisions for Northern Ireland, according to RTE.
Following reports on the deal, the pound was up 1.20% against the dollar as of 12:43 p.m. ET, and was trading 0.69% higher against the euro, before paring gains.
