🤑 It doesn’t get more affordable. Grab this 60% OFF Black Friday offer before it disappears…CLAIM SALE

Pound Falls as Investors Brace for Brexit Fight in Parliament

Published 02/09/2019, 08:41 pm
Updated 02/09/2019, 09:15 pm
Pound Falls as Investors Brace for Brexit Fight in Parliament
GBP/USD
-
EUR/GBP
-
GB10YT=RR
-

(Bloomberg) -- Follow @Brexit, sign up to our Brexit Bulletin, and tell us your Brexit story. 

The pound fell to the lowest level in two weeks as a showdown between U.K. lawmakers over Brexit loomed large.

Sterling was the worst performer among its Group-of-10 peers after Prime Minister Boris Johnson threatened to kick out Conservative lawmakers who vote to block a no-deal Brexit as Parliament prepares to return from holiday on Tuesday. The U.K. manufacturing sector shrank in August at the fastest pace since 2012, which also hurt sentiment.

“This move is a reaction to the news from the whips office that Conservative MPs could be expelled,” said Jane Foley, head of currency strategy at Rabobank. “That means even though the opposition will try and rush through this legislation to stop no deal it’s really not clear who will win.”

Bonds completed a fourth month of gains in August as investors braced for Johnson to suspend Parliament ahead of the Brexit deadline on Oct. 31, limiting the time available to prevent a chaotic exit from the European Union. Opposition lawmakers will present legislation Tuesday that would force the U.K. to delay Brexit again if an agreement hasn’t been reached.

The pound fell 0.6% to $1.2084 as of 10:56 a.m. in London, and weakened 0.3% to 90.71 pence per euro. The yield on U.K. 10-year bonds fell four basis points to 0.44%.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.