Sterling sinks on Brexit woes as London stocks soar

Jul 29, 2019: The pound fell to levels not seen in over two years on Monday as a no-deal Brexit seemed ever more likely, while London stocks surged thanks to bubbling takeover activity.

“The British pound started weakening sharply today, with the market awaking to the reality of a new UK government, its rather combative stance on the current EU-UK Brexit deal and its open remarks on the rising probability of a no deal Brexit,” said ING strategist Petr Krpata.

Calling the fall a “meltdown”, Krpata said sterling’s woes were unlikely to be over, as “politics should remain the key negative for sterling in the months to come”.

Monday’s level in terms of the dollar was the worst since March 2017.

Prime Minister Boris Johnson has vowed to lead Britain out of the EU on October 31 even if this means doing so without a divorce agreement.

AFP/APP

Posted on: 2019-07-29T21:40:00+05:00

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