Pound sterling sinks lower on no-deal Brexit jitters
The Brexit-battered pound extended its losses against the dollar and the euro this morning, on no-deal Brexit concerns.
Sterling is currently sitting just above €1.10, down 0.8 per cent, while it was buying $1.33, down 0.6 per cent.
Investors have became more cautious about the risk of Britain and the EU failing to agree on a Brexit deal, with just three weeks until new year’s eve deadline.
The pound dropped late last night, when a dinner between UK Prime Minister Boris Johnson and European Commission President Ursula von der Leyen ended with both sides still “far apart.”
“At the current juncture, the balance of risks appears to be shifting to the downside for the pound as the end game approaches for Brexit talks,” Lee Hardman, currency analyst at MUFG, wrote in a note to clients. “Hopes for a last-minute trade deal are fading.
Pound sterling has been jittery on Brexit headlines, dropping in response to news suggesting a deal is unlikely and rising when hopes are raised. Many investment banks still think that a Brexit deal will be reached at the last minute.