Risks of a "No Deal" Brexit rose on Thursday sending the British pound to its lowest level in several months against the euro and the dollar.
The GBP/USD pair fell for a ninth session in a row on Thursday, where it is currently trading at 1.2795, the lowest level since mid-February, as of 12:50 GMT.
Against the euro, the pound pushed the EURGBP higher to 0.8747, the highest since February 19.
Talks between political parties in the United Kingdom failed to find any solution to the current impasse in Britain's departure from the European Union.
Preicit Kerr Starmer the opposition spokesman in the United Kingdom, said “the Labor Party would vote against the bill of withdrawal agreement if there was no agreement with the government.”
After failing to obtain parliamentary approval three times, the government is now planning to present British Prime Minister Theresa May's exit deal to the Parliament to vote on it again early June.
The dollar index managed to resume its rebound from Monday’s bottom of 96.79 to trade higher at 97.54, thereby putting more pressure on the pound.
The dollar widened its gains after the release of better than forecast housing, unemployment claims and manufacturing U.S. reports.
As the U.K. lacks the release of important economic
data this week, the pound is likely to be more affected by the Brexit updates
and general sentiment in the market.