The British Pound Sterling steadied on Friday, August 25, after falling to a two-month low against the dollar in the previous session, as investors waited to see what Federal Reserve chief Janet Yellen would say in a speech later in the day.
The GBP also held near its lowest in more than 10 months against the euro, with political uncertainty weighing on market sentiment and the corporate outlook for British companies.
“Broader markets are happy to push sterling lower with any negative news, and there is a big gap opening up between the outlook of both the eurozone and the U.K economies,” said David Madden, a markets analyst at CMC Markets in London.
Sterling was flat at $1.2803 against the dollar and is poised for a fourth consecutive week of losses. Against the euro, it held close to the low of 92.37 pence reached on Wednesday, a level it last tested in October 2016. The pound has weakened more than 5 percent against the euro since mid-July.
The government is trying to move forward formal discussions on leaving the European Union, issuing a series of position papers that have outlined potential compromises over key issues, Reuters reports.
