Pound Sterling is at a three-month low versus the euro and fell to as low as €1.1379 earlier today. The pound was at €1.1381 at 9.08am BST as it struggled to recoup gains. Against the US dollar, the pound tumbled below $1.27 for the first time since mid-January and was trading at $1.2693. The poor performance from Sterling comes ahead of a cabinet meeting in which senior ministers will consider Prime Minister Theresa May’s Brexit deal.
The Prime Minister will try to rally support for her “bold offer” to MPs across the Commons in a bid to finally win backing for her agreement.
Sterling fell below $1.27 for the first time since mid-January ahead of a UK cabinet meeting in which senior ministers will consider the merits of whether lawmakers should hold indicative votes on Brexit options.
Connor Campbell, analyst at Spreadex, said: “The pound continued to see its life leech away on Tuesday.
“A 0.3 percent drop against the dollar pushed cable under $1.27 for the first time since the very start of 2019, while a 0.1 percent slide dip against the euro took sterling to a 3-month-plus, sub-€1.138 low.”
The 2016 Leave campaign was clear that we would leave with a deal
Meanwhile, Chancellor Philip Hammond will use a major speech on Tuesday night to warn of the impact a no-deal Brexit could have on the UK economy.
Mr Hammond will say: “On the populist right, there are those who now claim that the only outcome that counts as a truly legitimate Brexit is to leave with no deal.
“Let me remind them: the 2016 Leave campaign was clear that we would leave with a deal.
“So to advocate for no deal is to hijack the result of the referendum, and in doing so, knowingly to inflict damage on our economy and our living standards.”
Mr Hammond’s comments come after Mr Johnson and former Brexit secretary Dominic Raab said they wanted to renegotiate Mrs May’s withdrawal deal with the EU, but not rule out a no-deal exit.
Neil Wilson, chief analyst at Markets.com, said: “The selling pressure on sterling shows no signs of abating, with the pound slipping to its weakest level since January this morning.
“Cable tried to make an inside day gain yesterday but ultimately finished lower and is again trading down today.
“There is just no bid for sterling so we can only expect a bounce for the pair should the dollar give it up.
“Bulls will no doubt keep trying to pick up pennies in front of this steam roller.”
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