Sterling stuck below $1.30 as British parliament returns

LONDON – 23 April 2019: Sterling was stuck under $1.30 on Tuesday as Britain’s parliament returned from its Easter break and the ruling Conservative party tried to move talks forward with the opposition Labour party over a Brexit agreement.

Volatility in sterling has fallen sharply in recent weeks after the European Union and London agreed to delay Britain’s departure date by up to six months, removing any immediate risks of a no-deal Brexit that would have hit the pound hard.

But the British currency has struggled to make much headway since, as traders doubt whether the talks will end in an agreement that can win the approval of lawmakers.

Data showing stronger than expected retail sales in March and a slight slowdown in inflation failed to move the pound much last week, as Brexit continues to dominate trading.

“PM (Theresa) May will again ramp up Brexit negotiations this week as the House of Commons sits again and pound volatility is set to increase,” MUFG analysts said in a note.

On Tuesday, sterling rose 0.1 percent to $1.2993 after earlier falling to as low as $1.2975, its weakest since March 11.

Against the euro it gained 0.2 percent to 86.555 pence per euro.