Experts have claimed, “Brexit uncertainty remained in the spotlight” keeping demand for the pound down across the globe.
Conservative Party politician Anna Soubry recently claimed Brexit could be blocked by MPs.
She said on the Andrew Marr show on Monday morning: “Will it definitely happen? I genuinely don’t know what is going to happen. I’ll tell you who might stop it and that’s the people of this country.”
Laura Parsons, currency analyst at TorFX said: “As a new week of trading got underway, the pound extended last week’s losses against the euro, hitting a low of €1.124.
“Although Bank of England (BoE) policymaker Gertjan Vlieghe indicated that UK wage growth is beginning to accelerate – supporting the case for a rate hike – demand for Sterling remained limited as Brexit uncertainty remained in the spotlight.”
The UK currency is also fairing badly compared to other overseas currencies.
Ms Parsons added: “The pound also edged lower against the US and Australian dollars during the European session.
“Although Brexit speculation is currently the main catalyst for pound volatility, today’s UK inflation report could also have an impact on GBP.
“Non-core inflation is believed to have eased from 3.0 per cent to 2.9 per cent in January.
“However, if consumer price pressures eased more than this, Sterling could stumble amid bets the BoE will revert to a more cautious attitude to monetary policy as inflation moves closer to target levels.”
Yesterday the pound was trading against the euro at £1.138.
A struggling pound faced lower rates earlier this week, as the exchange rate took a battering following Brexit uncertainty.
With divisions in the government and accusations of being ill-prepared deal negotiations, the pound fell as low as £1.127.
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