Pound slide continues as UK stares into Brexit abyss

Trade Secretary Liam Fox has added weight to concern about a deal
Trade Secretary Liam Fox has added weight to concern about a deal

The pound continued its downward slide on Thursday as fears of a no-deal Brexit continued to pile pressure on the British currency.

Sterling shed 0.3% against the dollar to leave it at 1.28, its lowest level for almost a year.

Against the euro, the pound hit a nine-month low as it edged down to h1.10.

Connor Campbell, financial analyst at SpreadEx, said: “Fears of a no-deal Brexit have really gathered steam in the last few sessions, a snowball effect stemming from Mark Carney and Liam Fox’s warnings either side of the weekend.”

Mr Fox, the Trade Secretary, said over the weekend that the chances of the UK leaving the EU without an agreement in place is becoming more of a reality.

He believes that a no-deal Brexit is now more likely than an agreed withdrawal, putting the odds at “60-40”.

His comments echoed those Bank of England Governor Mark Carney last week.

Sterling is likely to plummet further if fears of “no deal” materialise, something analysts believe is a real possibility.

Michael Hewson, chief market analyst at CMC, said: “Whether you believe such a scenario is likely or not, such is the incompetence of this Government, as well as its Opposition, investors would be foolhardy not to take some steps to hedge against such an outcome.”