Pound weakened after Trump said that Brexit may hurt US-Britain trade. Sterling was the weakest performing major currency.
Sterling slumped versus the dollar and the euro on Tuesday after falling through some key levels overnight. Comments from U.S. President that a Brexit deal could hamper trade ties with the United States weighed on pound.
British Prime Minister Theresa May is facing an uphill battle to win over critics in her Conservative and opposition parties. The Brexit deal must be approved by a divided parliament.
Those tensions are weighing on the short-term outlook for the pound.
Against the dollar, the British currency fell more than 0.5% to $1.2734, its lowest level in nearly two weeks. It also fell a third of a percent against a weak euro to 88.78 pence.
Sterling’s losses were compounded by the fact that it broke through a key support level of around $1.2770.
Forex – Commodities – Pound weakens on Trump comments on Brexit
The dollar index, which measures the dollar’s value against six other major currencies, rose 0.2% to 97.28. This was its highest level in almost two weeks.
Trump’s latest remarks on trade come just before a G20 meeting in Buenos Aires on Nov. 30 where Trump and Chinese President Xi Jinping are expected to meet.
The euro dipped to $1.1305 EUR, its lowest level since mid-November. It was last trading at $1.1343, down 0.1 percent on the day.
The yen was steady at 113.67 yen per dollar, while the trade-sensitive Australian and New Zealand dollars inched higher.
Sources: Reuters, CNN money, BBC
PLEASE NOTE The information above is not investment advice.