Pound slides against the dollar and euro amid fears EU will reject May’s plea for a Brexit extension

Mail Online | 3/20/2019 | Joe Middleton For Mailonline
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The pound has plunged against the dollar and the euro amid fears the EU will reject Theresa May's plea for a Brexit extension.

With no consensus in parliament over how to leave the EU, Mrs May was forced to seek an extension from the EU beyond the scheduled departure date of March 29.

Pound - Cent - US - Dollar - London

The pound shed 0.5 per cent against the US dollar to 1.319 at the London market close and against the euro, sterling was also down 0.5 per cent at 1.162.

It came after another day of high political drama, which saw the Prime Minister pen a letter to European Council president Donald Tusk, asking to postpone the UK's departure from the European Union from March 29 to June 30.

Mr - Tusk - Response - Extension - Vote

Mr Tusk has said in response a 'short extension' to Article 50 should be possible 'conditional' upon a positive vote in Parliament for Mrs May's twice rejected deal.

The delay requested is shorter than some in the market had been expecting and the prime minister said a no-deal Brexit was still possible, keeping sterling traders on edge.

France - May - Request - Departure - Plans

France then threatened to reject May's request unless she can guarantee to get her twice-rejected departure plans through parliament.

Connor Campbell, financial analyst at SpreadEx, said: 'Sentiment further soured on Wednesday, sterling dealt a blow as Theresa May opted to ask the EU for a brief, three-month Brexit delay over a longer extension.

EU - Request - Something - Guarantee - France

'That the EU would then have to unanimously approve the request, something that isn't a guarantee, especially with France demanding Theresa May prove she can pass her twice-rejected deal, further complicates matters.'

The FTSE 100 also ended the day in the red, falling 32.99 points, or 0.45%, to 7,291.01.

Mrs - May - Statement - Wednesday

Mrs May is expected to make a statement later on Wednesday.

Markets have largely priced out the chances of a no-deal Brexit but...
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