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LONDON (Reuters) – The pound traded against the dollar and the euro on Monday ahead of a debate in parliament that could reveal significant dissatisfaction within Britain's Prime Minister Theresa May's party over her plans for Brexit.
Sterling has struggled to capitalize in recent weeks on the economy is improving because of a collision with the United States.
Markets expect the Bank of England to become a member of the United Kingdom.
The Prime Minister is expected to survive today's debate on a customary law.
That risks undermining the government and could increase the chances of an early election which would hurt the pound.
"Political uncertainty helps to explain why the pound has not been strengthened yet on the back of the government's plans for a Brexit deal," said analysts at MUFG.
At 0815 GMT the pound traded against the pound at $ 1.3242 and against the euro at 88.30 pence ..
Sterling finished last week one percent against the dollar, its biggest weekly drop since late May.
President Donald Trump's visit to the UK last week.
They would have been able to get their hands dirty, but they would not be able to do it.
Meanwhile over the weekend, German business groups told members to prepare for a hard Brexit.
Long bets on sterling have been played down on the market, positioning data shows.
Reporting by Tom Finn; Editing by Toby Chopra
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