British pound turns lower in volatile trade on concerns Parliament will spurn Johnson's Brexit pact

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Associated Press

The British pound surged but then turned lower on concern Boris Johnson won't have the votes to pass a Brexit deal he agreed with the European Union.

The pound rose as high as $1.2987 before turning lower.

Stephen Innes, market strategist at AXI Trader, said the rejection by the DUP may also lead to hard-line Conservatives in Johnson's own party rejecting the deal. "Suggesting, that in a minority government, 18 is a lot of votes to pick up and could be a bridge too far, especially amid speculation that most of those voters are pushing for a second referendum," he said.

Related: Brexit pact faces steep odds in the U.K. Parliament - and Johnson might not mind failure

Gains for U.K.-listed stocks were more tempered, perhaps reflecting the short covering that already happened last week.

U.K. banks Barclays , the Royal Bank of Scotland and Lloyds Banking Group each rose, but registered gains of less than 2%.

The FTSE 100 gained 0.85% to 7228.16.