Sterling flips higher after FT tweet revives Brexit deal hopes

LONDON (Reuters) - Sterling had a rapid turnaround on Thursday, driving up over a cent to as high as $1.2975, after a Financial Times reporter tweeted that officials in London were more optimistic of a post-Brexit EU deal after the latest round of talks.

Sterling fell after a Reuters report that British and EU trade negotiators have failed to bridge their differences on state aid.

But it reversed its losses after a FT reporter tweeted at 1107 GMT that a "landing zone" for state aid has been identified and that fishing remains the last sticking point.

At 1152 GMT it was up 0.3% on the day versus the dollar at $1.2965 <GBP=D3>. Versus the euro it was up 0.2% at 90.725 pence per euro <EURGBP=D3>. It had been as low as $1.2819.

(Reporting by Elizabeth Howcroft)