An uncertain near-term outlook for U.K. politics coupled with signs Britain's economy may be struggling anew weighed on sterling which fell earlier to more than one-week lows under $1.51. By slipping under $1.51 earlier, the pound had weakened more than 4 cents below last week's two-month peak near $1.55.
A construction sector PMI slowed more than expected to its lowest level in nearly two years, which came on the heels of lackluster news last week on quarterly growth, the slowest in two years in the first quarter, and a sharp slowdown in manufacturing. Britain votes on Thursday for a new premier.
Until the next administration can form a stable government, the pound would remain vulnerable to further falls. And on the eve of the crucial vote, U.K. services growth Wednesday is also forecast to slow.
