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Pound hits 20 week low against the euro

Pound hits 20 week low against the euro

The pound dropped to a 20-week low against the euro amid weak UK data and growing fears of a disruptive Brexit weighing on the currency.

The pound has dropped for four straight weeks, hit by concerns that Britain will crash out of the European Union on October 31st without an agreement on the terms of its departure.

Sterling remained just above five-month lows, trading flat on the day around $1.268.

Against the euro, it fell 0.2% to 88.92 pence, a four-and-a-half-month low.

US President Donald Trump, who arrived in Britain yesterday, has backed Brexit hard-liners such as Boris Johnson and Nigel Farage.

He’s to meet Prime Minister Theresa May and attend a dinner that may include Brexit backers like Johnson.

Nearly a dozen candidates are vying to replace Mrs May as prime minister.

Johnson, the bookmakers’ favourite, says the UK should leave the EU without any agreement.

Short positions on sterling are at their highest since March 17th, according to the US Commodity Futures Trading Commissions, reflecting uncertainty on Britain’s economic outlook.

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