Underlying political concerns continue to have a negative impact on Sterling.

The Euro was undermined on Friday by weak PMI data with fresh 4-year lows in business confidence reinforcing growth concerns.

The dollar secured support from fresh concerns surrounding European currencies and firm retail sales data with the dollar index testing 19-month highs.

Global equities continued to decline on Friday as global growth concerns hurt sentiment, although markets held steady on Monday.

Oil prices were also hampered by global growth concerns and a solid dollar tone.

Cryptocurrencies remained under pressure with fresh 15-month Bitcoin lows before a slight recovery on Monday.

Sterling lost ground ahead of the New York open on Friday with underlying political concerns continuing to have a negative impact. The weak Euro-zone PMI data also had a wider negative impact on European currency sentiment.

EU Council President Tusk stated that he had no mandate to re-open the Brexit Withdrawal Agreement and, although officials were generally supportive of Prime Minister May, there was also an element of criticism that May had not been more specific over her demands. The slide in global risk conditions was also a factor undermining UK currency support. EUR/GBP made limited net gains, although there was resistance near 0.9000 while GBP/USD hit lows below 1.2550.

Increased speculation that a second referendum could be the only way to break parliamentary deadlock provided some Sterling support, although Prime Minister May firmly rejected the possibility and the currency failed to make significant headway as GBP/USD traded below 1.2600 with EUR/GBP near 0.8985.

Weak Visa spending data and a decline in the Rightmove house-price index reinforced concerns over a weak short-term economic performance, although politics dominated.

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