Sterling Rises as British Prime Minister Moves Forward With Brexit Plan - TheStreet

The British pound rose on Wednesday after Prime Minister Theresa May said she had secured cabinet approval for her Brexit deal.

Sterling traded 0.5% higher at $1.30 as of 2:52 p.m. ET after breaking below $1.29 earlier in the day.

Under the agreement, the U.K. will be bound to the EU for several years after the country formally leaves the bloc in March. The deal shows that May was able to head off a revolt by her own ministers, some of whom have been critical of the Brexit plan. Still, the measure heads to Parliament where continued objections could threaten May's government and even scuttle Britain's agreement to withdraw from the European Union.

"This is a decision which will come under intense scrutiny," she was quoted by the Wall Street Journal as saying while standing outside Downing Street, the prime minister's residence.  "This is a decision which is in the best interest of our entire United Kingdom."

The deal is now expected to be presented to EU leaders later this month. In the meantime, it hasn't been released to the British public ahead of the March 29 date set for the U.K.'s exit from the bloc. May needs to get approval from Parliament, where both the opposition Labour Party and members of her own Conservative Party have expressed serious objections.

The compromise agreement allows the U.K. to maintain close ties to the EU, its biggest trading partner, while also reclaiming control over its borders.