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REUTERS
LONDON
The pound fell sharply on Wednesday on growing expectations that Prime Minister Theresa May will again fail to get her Brexit deal approved and could soon face a leadership challenge.
Sterling has weakened more than 1 percent this month as deadlocked cross-party talks expose deep political divisions over how, when and even if Brexit should take place.
The currency fell 0.5 percent to $1.2943, its lowest since Feb 15, and dropped 0.4 percent versus the euro to 87.13 pence.
“Failure to pass the deal [in June] could well see May finally step down, opening the door for a more eurosceptic prime minister and a possible hard Brexit,” said Petr Krpata, an FX strategist at ING in London.
Sterling has fallen for eight consecutive days against the dollar despite mostly solid economic data in Britain in recent months.
A worry for investors is that months of inventory stockpiling by British companies before Brexit will show up this quarter.
LONDON
The pound fell sharply on Wednesday on growing expectations that Prime Minister Theresa May will again fail to get her Brexit deal approved and could soon face a leadership challenge.
Sterling has weakened more than 1 percent this month as deadlocked cross-party talks expose deep political divisions over how, when and even if Brexit should take place.
The currency fell 0.5 percent to $1.2943, its lowest since Feb 15, and dropped 0.4 percent versus the euro to 87.13 pence.
“Failure to pass the deal [in June] could well see May finally step down, opening the door for a more eurosceptic prime minister and a possible hard Brexit,” said Petr Krpata, an FX strategist at ING in London.
Sterling has fallen for eight consecutive days against the dollar despite mostly solid economic data in Britain in recent months.
A worry for investors is that months of inventory stockpiling by British companies before Brexit will show up this quarter.
