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Bloomberg
The pound slumped for a fourth day as investor concerns over a no-deal Brexit intensified.
Sterling continued its slide versus both the dollar and the euro, with investors pricing a higher chance of the UK crashing out of the European Union on October 31. As differences between the two sides increase, Prime Minister Boris Johnson’s office said the UK will push the EU to negotiate a better divorce deal while preparing the country to leave the bloc without one if he fails.
“The biggest threat to the pound for the remainder of this year is the risk of an accidental no-deal Brexit,†Credit Agricole SA strategists, including Valentin Marinov, wrote in a note to clients. “We continue to estimate a long-term fair value for pound-dollar that is consistent with a disruptive Brexit outcome of around 1.20.â€
Sterling fell 0.6 percent to $1.2151 as of 4:40 pm in London and weakened 0.6 percent to 91.74 pence per euro. Benchmark gilt yields fell two basis points to 0.64 percent, while the FTSE 100 Index of stocks retreated from the highest level since August 2018.
The yield on Ireland’s 10-year bonds climbed two basis points to 0.17 percent.