Diverging Brexit Scenarios Send Pound Down After Whipsaw Session

Sterling weakened against most its Group-of-10 counterparts, while traders said flows were thin as most investors were staying on the sideline after Tuesday’s whipsaw session. While May is expected to survive a vote of no confidence that will take place on Wednesday, uncertainty over how she will put together a new deal is spurring risk aversion. “Tuesday night’s vote may have increased the chances of a second referendum but it also increased the chances of a no deal Brexit,” said Sue Trinh, head of Asia foreign-exchange strategy at Royal Bank of Canada in Hong Kong.