The Pound Sterling nosedived to its lowest level against the euro since the darkest days of the financial crisis today as the UK was warned that No Deal Brexit ‘talk’ was spooking the financial markets.
Just last Friday Sterling also fell to its lowest level in more than two-and a-half years against the dollar as the British economy went into the red for first time since 2012
The pound tanked overnight to a low of 1.0725 euros to the pound, the lowest level since October 2009, when Europe was in the grip of the worst economic situation for 80 years.
It later made a slight recovery but it means that already badly-hit holidaymakers setting off on holiday abroad face getting even less spending money for the pounds in their pockets.
The UK currency made a slight gain against against the US dollar after losses on Friday linked to worrying new GDP figures.
They revealed the economy contracted in the second quarter for the first time in nearly seven years, hit by the trade row and Brexit uncertainty.
‘The combination of a slowing economy, global economic weakness, the increasing chance of a cut to interest rates and the risk of a No Deal Brexit will continue to anchor sterling,’ Neil Wilson, chief market analyst at Markets.com, said in a note.