Pound Falls to Lowest Since October Versus Euro on No-Deal Fear
The pound fell to the lowest level in more than nine months against the euro amid growing concern that the U.K. could end up leaving the European Union with no agreement for future economic ties.
Sterling dropped for the third day versus Europe’s common currency and weakened against all of its Group-of-10 peers. U.K. International Trade Secretary Liam Fox said over the weekend that the risk of a no-deal Brexit had increased to as much as 60 percent.
The pound’s weakness versus the euro “is a clear sign that markets are starting to focus on the pound-specific risks associated with a no-deal Brexit,” said Viraj Patel, a currency strategist at ING Groep NV. “We’ve penciled in a 0.91-0.92 high over the coming months to reflect peak no-deal Brexit uncertainty.”
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