Sterling sinks to lowest level in two years against the euro
Pound faces abrupt bout of selling pressure as speculation rumbles about November poll
The pound abruptly dropped to a two-year low against the euro in mid-afternoon action in London, after a Financial Times report that Boris Johnson would hold a general election in the “days after” the UK is due to leave the EU on October 31 if he loses a likely confidence vote in parliament.
Sterling slid as low as €1.0794 on Thursday, drawing back to €1.0815 in early afternoon trading with a 0.2 per cent fall from the previous day’s trading. August traditionally shows light trading as many are on holiday, which often makes for bigger moves than normal.
Thursday’s level was the lowest since August 2017. The pound has fallen more than 5 per cent since May 1 against the euro.
Sterling briefly fell as low as $1.2094 before recovering slightly to trade 0.1 per cent lower at $1.2120.
Mr Johnson, UK prime minister, would hold a general election “days after” the UK is due to leave the EU on October 31, should there be a successful parliamentary no-confidence vote in his government, senior aides to the prime minister have said.
“We can’t stop them forcing an election but we control the timetable so we will force the date after October 31,” said a senior 10 Downing Street official. “If there must be a general election, then it will be days after October 31.”
Another close aide to Mr Johnson did not deny that any election would be held in the first few days of November.