Sterling steadies despite political threat to May

Sterling edged higher against the euro and dollar in a sign that currency markets still bet that the risk of Britain crashing out of the EU is unlikely. At the start of a week that may decide whether British MPs can avoid the worst possible of Brexit outcomes, and the future of Prime Minister Theresa May may be decided, the UK currency traded calmly. Joshua Mahony, senior market analyst at online broker IG, said that British politicians had “seemingly few options at hand”.

“The hope to keep extending the timeline to somehow hope that MPs will ultimately vote for the current deal looks doomed to fail, and even a change in leadership is unlikely to bring about a deal that would garner enough support to pass,” he said.