LONDON, Sept 13 (Reuters) - The pound extended gains andjumped to a seven-week high against the dollar as investors cuttheir sterling short positions on the receding risks of ano-deal Brexit.
Sterling rose 0.6% to $1.2418, the highest sinceJuly 26. Against the euro, sterling's rise was less pronounced,with the pound gaining 0.4% to 89.350 pence.
"All those Boris (Johnson) shorts are beginning to bail asthey realise he can’t deliver no-deal (Brexit)," said VirajPatel, FX & global macro strategist at Arkera.
The British parliament earlier this month voted to stopPrime Minister Boris Johnson's government from taking Britainout of the European Union on Oct. 31.(Reporting by Olga CotagaEditing by Tommy Wilkes)