LONDON, April 27 Reuters Sterling slipped against the dollar in early London trading on Tuesday, but remained within the previous sessions ranges and stabilised against the euro, still struggling to regain the momentum it had in the first quarter of 2021.
Major currency pairs were little changed ahead of the U.S. Federal Reserve meeting on Wednesday where no policy change is expected.
Prime Minister Boris Johnson is facing a stream of allegations in newspapers all of them denied about everything from his muddled initial handling of the COVID19 crisis to questions over who financed the redecoration of his official apartment.
The political scandals were responsible for a decline in sterling last week, said Petr Krpata, chief EMEA FX and IR strategist at ING.
Based on our financial fair value model, EURGBP currently trades 1.3 overvalued, suggesting some nearterm support for sterling unless we see further allegations about the Conservative government, he wrote in a note to clients.
So far, it has been a rather challenging month for GBP, with the currency suffering first from concerns about the pace of the vaccination programme and now by a degree of political uncertainty.
At 0750 GMT, the pound was down 0.2 against the dollar at 1.3881. Versus the euro, it was down less than 0.1 at 86.975 pence per euro.
The pound had its strongest quarter against the euro since 2015 last quarter, helped by relief that a nodeal Brexit was avoided, a lessening of expectations for…