Sterling slips before key Brexit votes in parliament this week

[LONDON] The pound drifted lower on Monday after posting its biggest weekly rise in more than 15 months last week as investors consolidated positions before crucial votes in the British parliament that will aim to break a Brexit deadlock.

Lawmakers earlier this month rejected Prime Minister Theresa May's EU withdrawal agreement, which included a nearly two-year transition period to help minimize economic disruption. That defeat set up a series of votes in Parliament on Tuesday through which lawmakers and the government will try to find a way forward.

The British currency edged a quarter of a per cent lower to US$1.3162 in early trading. Against the euro, it drifted 0.1 per cent lower at 86.57 pence.

Growing optimism on the outlook for the pound fuelled a rally last week, sending the currency up 2.5 per cent against the dollar last week, its biggest weekly gain since mid-September.

REUTERS