- September 3, 2019
- Posted by: Trading
- Category: News
(Bloomberg) — Follow @Brexit, sign up to our Brexit Bulletin, and tell us your Brexit story.
The pound fell to the lowest level in two weeks as a showdown between U.K. lawmakers over Brexit loomed large.
Sterling was the worst performer among its Group-of-10 peers after Prime Minister Boris Johnson threatened to kick out Conservative lawmakers who vote to block a no-deal Brexit as Parliament prepares to return from holiday on Tuesday. The U.K. manufacturing sector shrank in August at the fastest pace since 2012, which also hurt sentiment.
“This move is a reaction to the news from the whips office that Conservative MPs could be expelled,” said Jane Foley, head of currency strategy at Rabobank. “That means even though the opposition will try and rush through this legislation to stop no deal it’s really not clear who will win.”
Bonds completed a fourth month of gains in August as investors braced for Johnson to suspend Parliament ahead of the Brexit deadline on Oct. 31, limiting the time available to prevent a chaotic exit from the European Union. Opposition lawmakers will present legislation Tuesday that would force the U.K. to delay Brexit again if an agreement hasn’t been reached.
The fell 0.6% to $1.2084 as of 10:56 a.m. in London, and weakened 0.3% to 90.71 pence per . The yield on U.K. bonds fell four basis points to 0.44%.
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