Sterling recovers earlier losses on no-deal Brexit concerns

British pound rose against US dollar on Monday, recovering from earlier losses in the session, as speculations about Britain's exit from the European Union without a deal rose.

The new prime minister of the United Kingdom will be announced next month, to succeed Theresa May, who resigned earlier this month but has represented her country at the G20 summit.

It is expected that the politician Boris Johnson is the most favourable candidate to win the post of the prime minister to lead his country out of the European Union before the deadline on October 31 next.

US President Donald Trump and his Chinese counterpart Xi Jinping are expected to meet on the sidelines of the G20 summit in Japan to discuss the possibility of a trade deal between the two countries.

Government data showed that the final reading of Britain's gross domestic product (GDP) registered 0.5% growth in the second quarter, in line with expectations.

In terms of trading, by 19:21 GMT, British pound rose against US dollar by 0.2% to 1.2696, recording a high of 1.2735 and a low of 1.2664.