The pound sterling has fallen to a seven-week low ahead of a second vote in the House of Lords on Tuesday. This vote is to amend legislation that will give Theresa May the authority to start the Article 50 exit process. Britain expects to trigger Article 50 to launch formal negotiations with the EU this month.
The pound fell 0.3 percent to $1.2202 GBP=D3, its lowest level since 17 January this year. It also weakened 0.3 percent to a seven-week low of 86.71 pence per euro EURGBP=D3.
Stephen Gallo, Currency Strategist at BMO Capital Markets, has stated: “The run up into the triggering of Article 50 is having a negative impact (on sterling), as have some of the recent data confirming a deceleration in growth in the first quarter of the year”.
Pound sterling has lost nearly a fifth of its value against the dollar since the UK voted to leave the EU last June.