forex Sterling on backfoot as political turmoil dogs Brexit process

[Anzo Lim 0]

Sterling wallowed near a more than two-year low on Tuesday on growing investor worries about a “no-deal Brexit” as rival British lawmakers fought for control over negotiations to leave the European Union.

 

The euro fell to the lowest in more than two years as weak economic data from the EU underscored expectations for the European Central Bank to ease monetary policy at a meeting next week.

 

The yuan will come into focus during Asian trading after it slipped to a record low versus the dollar in offshore trade due to fading hopes for a resolution to the U.S.-China trade war.

 

The pound is likely to remain under pressure ahead of a vote in Britain’s parliament about Brexit later on Tuesday, the outcome of which could trigger an early election and Britain’s exit from the EU without trading agreements.

 

A messy exit from the EU is certain to weaken the pound, but it could roil other currencies as investors adjust their positions to exit trades in riskier assets.

 

Source: Reuters

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