By Kunle Adedoyin
The British Pound Sterling was almost at this year’s low as it suffered its worst week in more than a year as cross-party Brexit talks broke down.
The Pound Sterling fell 0.3 per cent on Friday morning to $1.2760, testing the currency’s closing lows for the year.
The pound, which has become a barometer for investors’ expectations of Britain’s exit process from the EU, has fallen 1.85 per cent this week as talks drifted towards breaking up, its worst week since the one ending February 9 last year, when it fell just over 2 per cent.
The opposition Labour Party on Friday ended the talks with the government, with leader Jeremy Corbyn saying the discussions that began in early April have “gone as far as they can.”
Instead Labour will continue to oppose Theresa May’s Brexit deal ahead of a House of Commons vote planned in June.
Analysis from UBS cautioned investors against making “strong directional trades” in Pound, with the political uncertainty expected to persist.
“We expect Sterling to remain rangebound over the next six months, with no clear end to the Brexit impasse in sight,” said Jon Gordon, strategist.
Against the euro, sterling touched its weakest level since February, with a unit of the shared currency costing £0.8751, a decline of 0.2 per cent for the day.