Sterling hovered just off one-week lows against the euro on Thursday after British Prime Minister Theresa May lost two parliamentary votes in two days, adding more Brexit uncertainty and raising the prospect she may soon face a general election.
The UK currency clawed its way higher by 1615 GMT to trade at around 90.16 pence, having earlier slipped to as low as 90.59 pence. It was a whisker lower on the day versus the dollar at $1.2776, having traded down to $1.2729 .
Expectations for sterling volatility declined, however, after British lawmakers on Wednesday demanded that the government come up with a plan B within days if May loses a Jan. 15 parliament vote on her Brexit deal. The demand for a quick plan B has appeared to reduce the chances Britain will leave the European Union on March 29 without a deal on their future relationship.
Source : Reuters