AS Theresa May delayed her “meaningful vote” on Brexit, the value of Sterling tumbled to a 20-month low.
The latest humiliation for the Prime Minister sent the pound to its lowest level since April 2017 versus the US dollar, at 1.251, a fall of 1.6% on the day. Against the euro, the battered British currency shed 1.2% to hit 1.103.
David Cheetham, chief market analyst at XTB, said: “The move may have spared an embarrassing parliamentary defeat for the PM but it will no doubt see those calls for her to be replaced grow ever more vociferous.
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“The negative reaction in the markets is more likely due to what it means for her position rather than the failure to win the vote – with even her staunchest supporters already highly sceptical as to whether the bill would pass.
“It now seems increasingly likely that a long-touted leadership challenge will ensue.”
Also dragging on the pound was a disappointing set of figures showing Britain’s economy suffered a slowdown in the three months to October as a contraction in the manufacturing sector and falling car sales slowed down major growth.
Over the three months to October, gross domestic product (GDP) rose 0.4% compared with the previous quarter, according to the Office for National Statistics (ONS).
This compares with 0.6% recorded in the three months to September.
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