Pound tumbles to two-and-half-year low on Brexit uncertainty – Business

The pound plummeted against the dollar and the euro on Tuesday after British Prime Minister Boris Johnson threatened to call early elections to boost Brexit, and analysts warned that the currency could fall further.

Johnson's warning that he will call a poll on October 14 if rebel lawmakers in his conservative party vote to force another delay to Brexit raised the possibility of a prolonged period of uncertainty in Britain, where the economy is already struggling.

"We're leaving on October 31, without buts," he said in a statement in front of 10 Downing Street.

Sterling, which sank around one percent on Monday, briefly fell to $ 1.1959, its weakest level since January 2017.

The euro was also around levels not seen since the second half of the same year, while investors are preparing for a great day in Westminster with the anti-Brexiteers who plan to hold a vote on their return from summer vacation.

"The continuing political uncertainty will do nothing to get the pound sterling out of its lethargy," said Neil Wilson, chief market analyst at Markets.com.

"There is more downward risk and too little to encourage bulls […] We are in unexplored waters here. We could possibly see $ 1.15 or even $ 1.10 in the coming weeks if operators decide to move against the pound. "

Meanwhile, the trade stagnation between China and the United States was playing in the Asian stock markets.

While Donald Trump has said that high-level negotiations between the world's two major economies will take place soon, a report said they had trouble agreeing on a schedule for any meeting.

& # 39; Fruitful approach & # 39;

the Bloomberg News History said they had not been able to agree on a call from the United States for the parameters of the talks, while Washington rejected Beijing's appeal for a delay in the latest tariffs that were applied over the weekend.

With the two still at odds, the Chinese media blamed the White House.

"It is time for the US administration to reconsider its poorly criticized movements against China," China Daily said in an editorial. "Working to secure a trade agreement would be a more fruitful approach."

the Bloomberg The report added to concerns that there will be no resolution for the line in the short term.

"If they are struggling to decide on a simple itinerary, the expectations of something tangible emerging from the trade talks look incredibly obscure at this time," said Stephen Innes, Asia and Pacific market strategist at AxiTrader.

Asian markets fell mainly. Tokyo ended unchanged and Shanghai closed 0.2 percent higher with Singapore barely moved and Wellington up.

But Hong Kong fell 0.4 percent, Sydney lost 0.1 percent and Seoul fell 0.2 percent. Taipei, Manila, Mumbai and Jakarta were also in red.

The London FTSE practically did not move, while Paris and Frankfurt lost 0.5 percent.

High-yield currencies fell against the relatively safe dollar, while the yuan fell to new lows of 11 years.

However, the Australian dollar rose more after the country's central bank refused to cut interest rates.

Oil prices fell again, extending Monday's strong liquidation over concerns about data showing an increase in OPEC and Russia's production, despite its commitment to reduce production.

Source: https://www.dawn.com/news/1503299/pound-tumbles-to-two-and-half-year-low-on-brexit-uncertainty


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