Sterling Slides To Two-Month Low As Brexit Pressure Builds On PM May To Resign

GBP slid to a two-month low on Tuesday as hopes for a breakthrough in Brexit talks between the ruling and opposition parties faded and British Prime Minister Theresa May faced growing pressure to quit.

Britain’s parliament returned from an Easter recess on Tuesday as the government continued its talks with the opposition Labour party about forging a Brexit agreement that can win the support of lawmakers.

But such talks have made little headway, analysts said, and weekend media reports said the pressure on May to find a solution or name a date for her to step down was growing.

A report in the Financial Times on Tuesday also said that May planned a new vote on her Brexit agreement – which has been defeated three times already – next week in a high-risk push to break the deadlock.

After earlier trading as high as $1.3019 in mid-European trading, the pound dropped to as low as $1.2928, down 0.3 percent on the day and its weakest since February 19. GBP/EUR now trading sun 1.1600 on morning lows of 1.1524.

Data showing stronger than expected retail sales in March and a slight slowdown in inflation failed to move sterling much last week, as Brexit continues to dominate trading.