Pound drops against dollar amid Brexit uncertainty

The pound dipped to $1.29 against the dollar today after another week of ongoing Brexit uncertainty.

Sterling dropped below $1.30 this afternoon as Theresa May was unable to renegotiate elements of the withdrawal agreement with the EU this week. 

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May failed to reopen negotiations however, the prime minister and European Commission president Jean-Claude Juncker did discuss possible “guarantees” and “legal assurances” in relation to the Irish border backstop.

Another vote in Parliament on May’s Brexit policy will take place by the end of next Wednesday, even if a new deal with the EU has not been agreed.

City Index senior market analyst Fiona Cincotta said: “The pound extended losses for a third consecutive session on Friday as Brexit fears rattled investors.

“A renegotiation of the Brexit deal never really took off and officials on both sides are downplaying the chances of a breakthrough.

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“Should Theresa May return to Parliament empty handed next week, there is a good chance that she will be forced to extend Article 50 and hand over the reins of the Brexit process to Parliament.

“Given the heightened levels of uncertainty the outlook for the pound remains negative. Sterling could quickly find itself below $1.30 once again.”