Sterling slips back from recent highs vs euro on Brexit talk hopes

Monday,   19-Aug-2019   02:34 PM (IST)

Sterling fell back from a near three-week high against the euro on Monday but sentiment towards the pound was better than in recent sessions as investors hoped Britain and the European Union would make some progress in Brexit talks. The pound last week had its strongest run in two months, helped by investors cutting their bets against the currency and some buying from traders who believe Britain can avoid a no-deal Brexit in October, when the country is due to leave the EU. Prime Minister Boris Johnson will meet French President Emmanuel Macron and German Chancellor Angela Merkel this week ahead of a G7 summit on Aug. 24-26 in Biarritz, France. He is expected to tell them that the British parliament cannot stop Brexit and a new deal must be agreed if Britain is to avoid leaving the EU. Johnson has repeatedly said Britain is leaving on Oct. 31 with or without a deal but the prospect of a no-deal Brexit hammered the pound in early August, sending it to two-year lows. The pound weakened by as much as 0.3% against the euro to 91.60 pence. Versus the dollar, the currency edged 0.2% down to $1.2123. The pound hit a near three week high against the euro on Friday at 90.91 pence.