Pound, euro under pressure as Brexit and economy weigh

London, Dec. 14: Europe’s two major currencies came under pressure on Friday, with the pound weakening as Theresa May’s attempt to rescue her Brexit deal faced opposition in Brussels and the euro dropping after grim economic data from France in the wake of recent widespread protests, reported the Financial Times.

Sterling dipped 0.9% as Mrs May’s bid to revive her Brexit deal ran into trouble at a European Council meeting in Brussels on Thursday. Chief EU Brexit negotiator Michel Barnier said Mrs May was reviving old ideas rejected during Brexit negotiations.

After wild swings over the course of the week on Brexit uncertainty that took it as low as $ 1.2471 but left the currency just shy of $ 1.27 on Thursday, sterling was trading at $ 1.2546 at 1.30pm on Friday.

Britain’s currency reached the lows of the day after Prime Minister Theresa May insisted EU leaders were “very clear” that they want to ensure her Brexit deal “gets over the line.”

After a listless start to the trading day, data that suggested the “gilet jaunes” protests had sent the French private sector into contraction in December sent the euro close to 0.8 per cent lower to $ 1.127.

The common currency had already weakened Thursday on concerns over the outlook for European economic growth. That move lower came after ECB chief Mario Draghi said risks were “moving to the downside owing to the persistence of uncertainties related to geopolitical factors, the threat of protectionism, vulnerabilities in emerging markets and financial market volatility”.