The pound is up against both the dollar and the euro after Brexit Secretary Dominic Raab, said: "We'll keep negotiating in good faith, I'm confident we'll get there."
Sterling rose by 0.15% against the dollar at $1.3101.
It is ahead 0.31% on the euro at €1.1165.
Sterling's slide deepens after the Prime Minister's comments renew fears of a no-deal Brexit.
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The pound is maintaining its lead against the dollar and is trading up 0.60% at $1.3147.
However, sterling's rise might owe more to a weaker dollar amid reports that US President Donald Trump threatened to impose additional tariffs on Chinese goods.
Craig Erlam, senior market analyst at Oanda, said: "The ongoing conflict between the US and China continues to be a primary driver of market sentiment, with investors concerned about the prospect of a full blown trade war as neither side shows a willingness to blink."
Against the euro, however, sterling has had a much more volatile day and is now at €1.1243.
The pound is up 0.23% against the dollar at $1.3057.
Sterling was given a boost on Monday after the European Union's chief Brexit negotiator Michel Barnier said that a deal with the UK is possible in the next six to eight weeks.
The pound edged down against the euro at €1.1224.
Curious moves from the pound this morning. It fell as low as $1.2897 in early trading, but started recovering from around 08:00.
Strong economic data helped give it another push, at one stage it hit $1.2957.
The pound has been battered around by Brexit concerns, with traders reacting to headlines about talks with Brussels and internal battles within the British government.
From that brief flirtation with $1.30, sterling has given up some gains against the dollar following positive comments from the EU's chief Brexit negotiator Michel Barnier.
But the pound is still ahead, up 0.43% at $1.2986.
Sterling rose by 0.64% to $1.3012 against the dollar after the European Union's chief Brexit negotiator Michel Barnier said that he was open to "other backstops" for the Irish border.
He also said: "Let me repeat also that the no-deal scenario is not our scenario."
Sterling is trading up 0.26% against the dollar at $1.2939.
It is also 0.20% ahead of the euro at €1.1119.
The pound was given a lift on Wednesday by reports that Germany - the largest economy in the European Union - and the UK had made progress on a Brexit deal.
Although London and Berlin denied there had been any change, sterling edged higher today.
Valentin Marinov, head of G10 FX strategy at Credit Agricole, tells Reuters: "Brexit negotiations are front and centre for markets, and despite yesterday's headlines the near-term uncertainty is going to persist."
Welcome to Business Live.
Dixons Carphone will give a trading update this morning - its first since admitting a massive data breach involving 5.9 million payment cards in June.
Among the other companies publishing their latest figures, transport group Go-Ahead will reveal its full-year results.
We will also be keeping an eye on the pound which rose against the dollar on a Bloomberg News report that Germany and the UK have made progress towards a Brexit deal.
As always, we'd love to hear from you. Email Business Live at bizlivepage@bbc.co.uk
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