Sterling slips on Brexit anxiety

On Monday, Sterling slipped to three-month lows in Asia markets having finished around $1.2175 in New York on Friday. It was last down 1.1% at $1.2044; while investors were again alarmed by concerns over Brexit.
Regional share markets were uncertain with MSCI’s broadest index of Asia-Pacific Shares outside Japan only up by 0.09%. Japan’s Nikkei lessened 0.3%, while Australia added 0.5%.

It was said that the market was reacting partly to a Sunday Times report saying that UK Prime Minister Theresa May will be talking on Tuesday to signal plans for a “hard Brexit” in order to regain control of Britain’s borders.
Analysts at JPMorgan wrote in a note: “It is impossible to say by how much a hard Brexit could weaken GBP, but we do not believe that further 5-10% depreciation should be regarded as an extreme scenario when set aside the UK’s high dependence on foreign capital.”

The flight from Sterling benefited the safe-haven Japanese Yen, with the Pound down 1.3% to 137.57 Yen while the US Dollar plunged to 114.24.
Trading was unpredictable with currencies trading on little volume. The Dollar edged up 0.2% to 101.390 on a basket of currencies, while the Euro pared initial losses to stand at $1.0632.

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