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Pound's Slide May Extend Below $1.40 as Focus Turns to Politics

Bloomberg business news

May Grapples With Tory Rebels as Brexit Troubles Mount

The pound could surrender some of its recent gains to fall back below $1.40 as U.K. political drama collides with a market that’s positioned for further sterling strength, according to Mizuho Bank Ltd.’s Neil Jones.

The U.K. currency declined against all of its Group-of-10 peers Monday after weekend news reports of a possible rebellion among Conservative lawmakers divided over how to leave the European Union. That added to uncertainty over Prime Minister Theresa May’s future as leader of the party.