Sterling slips The pound had rebounded to as high as $1.2317 GBP=D4 earlier on Thursday against a dollar weakened by a lack of detail on President-elect Donald Trump‘s spending plans in his first news conference since his election on Wednesday.
But after the news of May’s speech, it slid backwards to trade at $1.2207, slightly lower on the day though well clear of Wednesday’s low of $1.2038.
Against a broadly stronger euro, sterling fell 0.9 percent to its weakest in almost two weeks, at 87.34 pence EURGBP=D4.
“If you were to look back at recent performances, it’s rare that she’s said anything that’s been taken positively, so the risk – if you had to go one way or another – is that she again pushes the market in the direction of a relatively hard exit, which is not a positive for the currency,” said RBC Capital Markets currency strategist Adam Cole.
Traders are also awaiting a decision – expected in the coming days – from Britain’s Supreme Court on whether to uphold a High Court ruling last year that said May’s government needed parliamentary approval before triggering “Article 50”, which will formally kick off Brexit negotiations with Brussels.
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