Pound Extends Drop as U.K. Political Chaos Adds to Brexit Stress
- Uncertain domestic backdrop outweighs soft-Brexit view: Mizuho
- Pound falls as Moody’s says U.K. election result raises risks
British Pound Drops After U.K. Election Surprise
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The pound fell against all its Group-of-10 peers on the prospect of an unstable coalition government heading into Brexit talks with the European Union in a week’s time.
Sterling extended Friday’s 1.6 percent slide against the dollar, which was the biggest one-day loss since October and came after the June 8 election resulted in a hung parliament, the worst scenario for the currency according to analysts in a Bloomberg survey. Prime Minister Theresa May is trying to form a new government with the backing of Northern Ireland’s Democratic Unionist Party after the Tories fell short of an overall majority. Formal Brexit negotiations are currently slated to start on June 19.