Sterling edged back towards five-month lows on Wednesday after the top contender to replace Prime Minister Theresa May reaffirmed his desire to take Britain out of the European Union with or without any agreement.
Boris Johnson told the BBC he was “serious” about leading Britain out of the EU on the Oct. 31 deadline without a deal if the bloc refused to negotiate a new exit agreement.
“We are heading for a showdown – a no-deal Brexit; a general election; or a second referendum,” said Derek Halpenny, European head of global markets research at MUFG Bank in London.
“The pound is set to come under renewed downward pressure over the…