BBC News reported on Monday that the UK government is expected to roll back the proposed scrapping of the higher rate of income tax that has sparked a backlash in the ruling Conservative Party.

No further details are provided on the same.

Market reaction

On the above headlines, the pound caught a fresh bid and jumped above 1.1200 against the US dollar. At the time of writing, GBP/USD is adding 0.84% on the day at 1.1252.