Theresa May’s Cabinet Meeting Is Adding to Volatility for the Pound

(Bloomberg) -- The pound was caught in choppy trading amid uncertainty about the outcome of a Cabinet meeting called to agree on a Brexit deal.

Sterling fell initially after Minister Nick Hurd said that Prime Minister Theresa May won’t issue a press statement. Minutes later, however, the Prime Minister’s Office said that May will make an announcement after all.

The pound was trading little changed at $1.2980 as of 5:52 p.m. in London after dropping as much 0.7 percent earlier in the day.

Brexit negotiators secured a Brexit deal on paper in Brussels Tuesday, yet the currency has been weighed down by worries that May’s top ministers or Parliament could reject the agreement.

With just over four months to go before the U.K. leaves the bloc in March, time is running out to ensure a smooth exit with a two-year transition period. That increases the uncertainty for companies including the banks and investment firms that crowd London’s historic financial center.

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