Sterling rose against the dollar and the euro today as the UK's fractious trade talks with the EU and expectations of rate cuts to counter coronavirus damage kept the currency near recent four month lows. 

British Prime Minister Boris Johnson has raised European Union hackles by saying Britain will not be bound by EU rules or the jurisdiction of its top court. 

The first round of talks with the EU's executive arm, the European Commission, is due to last until Thursday, with half a trillion euros' worth of annual trade at stake. 

Sterling, which has come under heavy selling pressure in recent days, recovered some ground. 

The currency stood at 86.94 pence per euro, up almost 0.3% on the day, having slid more than 1% yesterday. 

Against the dollar, sterling was up 0.3% at $1.2791, holding above a recent four and a half month low of around $1.2726. 

The trade talks have also been overshadowed by deepening concerns over the spread of coronavirus and uncertainty over the extent of the economic damage it could cause. 

Market expectations have grown for central banks to cut interest rates to limit the fallout, including possibly through coordinated action. 

Current Bank of England Governor Mark Carney told politicians today that he expected a "powerful and timely" global response to the economic hit from coronavirus. 

Mark Carney added that the UK central bank stood ready to act.

Money markets have brought forward their bets on a Bank of England rate cut, now seeing a more than 80% chance of a 25 basis point cut on March 26. 

Almost two cuts are priced by the end of 2020, compared to none a few weeks ago.