Sterling was set for a record 10th week of consecutive losses against the euro as weak UK data and the growing possibility of British interest rate cuts in the event of a chaotic Brexit kept investors sidelined.

Sterling was set for a record 10th week of consecutive losses against the euro as weak UK data and the growing possibility of British interest rate cuts in the event of a chaotic Brexit kept investors sidelined.

A surge in the value of sterling against the euro on increased speculation that a UK rate hike is looming has for the time being eased fears about the fallout of Brexit boosting cross-border shopping and disrupting the economy.

The pound fell the most in more than two weeks as Bank of England policymakers signalled further monetary easing is possible amid economic uncertainty after the UK voted to leave the EU.

Bank of England policymaker Kristin Forbes said yesterday that a slowdown in China and other emerging markets should not block a long-awaited British interest rate hike, which she said should come “sooner rather than later”.