Sterling was at its strongest against the euro in two-and-a-half years on Wednesday, supported by a relatively hawkish Bank of England and political uncertainty in France and Germany, though it dipped against a strengthening dollar.

As sterling rose to €1.2157 against the single currency - its highest since March 2022 - a senior foreign exchange trader in the City said it could reach €1.30 next year.

Stormont assembly members have voted to continue Northern Ireland's post-Brexit trade arrangements for at least another four years. The process, known as the democratic consent motion, was first agreed between the UK and EU in the 2020 Withdrawal Agreement to give local politicians a say in the new post-Brexit trading rules.

Northern Ireland's Stormont Assembly has voted by 42 to 35 MLAs to maintain Ulster's special post-Brexit trading arrangements for another four years. The vote has ensured Northern Ireland will continue to follow some EU laws to maintain an invisible border on the island of Ireland,