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7/16, 12:59 PM (Source: TeleTrader)
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Sterling drops to 27-month low against dollar

The British pound dropped against the dollar on Tuesday, hitting the lowest level since April 2017, as Brexit uncertainties outweighed positive employment data. The United Kingdom unemployment rate remained at the record low of 3.8% in the quarter to May , according to the latest update from the Office for National Statistics. The report also showed that annual weekly wages rose to 3.4% including bonuses.

Regarding Brexit, Ursula von der Leyen, the nominee for the European Commission presidency, stated she would be open to granting the UK another delay if necessary but failed to clarify if the European Union would reopen withdrawal agreement talks with Britain. Earlier, outgoing European Council President Donald Tusk stressed the EU's stance on Brexit will stay the same once new officials assume the bloc's top positions. Meanwhile, both candidates to succeed Theresa May as UK prime minister, Boris Johnson and Jeremy Hunt, insisted the Irish backstop is "dead" and vowed to find an alternative solution to the issue if they win the Tory leadership contest.

After hitting the over two-year low of 1.24089 earlier in the session, sterling slid 0.81% to go for 1.24135 at 12:55 pm CET. The British currency declined 0.74% compared to the yen to sell for 134.0755 at 12:58 pm CET, while the euro gained 0.47% against the pound to change hands for 0.90372 at 12:59 pm CET.

Breaking the News / NP