LONDON: Sterling bounced from earlier lows on Monday after the Financial Times reported that the main elements of a Brexit treaty text are ready.

The pound rose half a percent to reach $1.2910 after the report quoted Michel Barnier, the European Union's chief Brexit negotiator, as saying the main elements of an exit treaty text are ready to present to the British cabinet on Tuesday.

The British currency had hit a session low of $1.2827 in the early London session following headlines over the weekend that punctured growing hopes last week that an agreement between Britain and the European Commission was imminent.

Against the euro, sterling turned positive on the day  to trade up 0.1 percent at 87.27 pence.