The pound fell against the dollar amid signs that negotiations for Britain\u2019s exit from the European Union have got off to a rocky start.<\/p>\n
Sterling extended losses and weakened against most of its Group-of-10 peers after U.K. Prime Minister Theresa May said that \u201csome in Brussels\u201d do not want Brexit talks to succeed and that there were attempts to deliberately influence the results of the June 8 snap elections in Britain.<\/p>\n
Earlier the Times reported that May has been told she will be prevented from joining discussions at future EU heads of state meetings. Brexit Secretary David Davis threatened to walk away from the bloc without a deal if provoked, while\u00a0flatly rejecting a reported exit bill of as much as 100<\/p>\n
Those reports added to the already fractious public atmosphere surrounding the talks following leaked details of a dinner meeting between May and European Commission President Jean-Claude Juncker, which alleged the latter was shocked by the Prime Minister\u2019s approach. May said on Wednesday that the leaks were deliberately timed to influence the June 8 snap election results. Earlier in the week she\u2019d said that Juncker is learning she can be \u201cbloody difficult.\u201d<\/p>\n
\u201cI am quite negative on the pound,\u201d said Richard Falkenhall, a strategist at SEB AB in Stockholm. \u201cThere are several parts in the negotiations which to me seem very tricky to find solutions on. This sort of political uncertainty will continue to be reflected in sterling going forward, and on top of that you have to add the signs we have seen since the beginning of the year, where you\u2019re seeing slower growth in the U.K.\u201d<\/p>\n
\u201cWhat you will end up with toward the second half of the year is the situation where you have the political uncertainty having a negative impact on capital spending in the U.K. and on top of that you have growth slowdown from more cautious consumers. That sort of mix is not very positive for sterling,\u201d Falkenhall said.<\/p>\n
Source: Bloomberg<\/p>\n","protected":false},"excerpt":{"rendered":"
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