Sterling remains under pressure as Brexit talks go nowhere

Sterling remains under pressure as Brexit talks go nowhere

The British pound was little changed around $1.30 on Thursday amid doubts that Brexit negotiations between the ruling Conservative and opposition Labour parties would get anywhere.

British media reported on Wednesday the talks were close to collapse, causing sterling to fall. Mounting pressure on Prime Minister Theresa May to name a departure date is also weighing on the pound.

On Thursday, the pound was up 0.1 percent, at $1.3014 , still near its weakest in a week. It was unchanged against the euro at 86.030 pence.

"Since most of her (May's) likely replacements are even more hard-core `Leave' supporters than she is, this raises the possibility of a hard Brexit, i.e. crashing out with no agreement at all," said Marshall Gittler, an analyst at ACLS Global.

The government conceded on Tuesday that Britain would take part in European Parliament elections this month, a poll that could deliver more setbacks to both major parties.

Sterling has traded in a $1.28-$1.32 range since Britain pushed its scheduled departure from the European Union back from March until Oct. 31. It's still not clear when, how or even if Brexit will happen.

Volatility in currency markets is low, and in recent weeks investors have curtailed their bets on big swings in the pound. (Reuters)

Source: www.businessworld.ie