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Diverging Brexit Scenarios Send Pound Down After Whipsaw Session

  • U.K. government will face vote of no confidence on Wednesday
  • Disorderly exit may see pound fall to $1.15: analyst survey
Bloomberg business news
Sterling Doesn’t Like Idea of Far-Left Government, Foley Says
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The pound fell in Asian trading as investors started to weigh a worst-case Brexit after Prime Minister Theresa May’s plan was roundly defeated by U.K. lawmakers.

Sterling weakened against most its Group-of-10 counterparts, while traders said flows were thin as most investors were staying on the sideline after Tuesday’s whipsaw session. While May is expected to survive a vote of no confidence that will take place on Wednesday, uncertainty over how she will put together a new deal is spurring risk aversion.