Sterling has slumped to US$1.585 and €1.137 in early morning trading following the results of the European elections which have heaped more pressure on the Prime Minister, says London foreign exchange trader Currencies Direct.
 
Mark O’Sullivan, director of dealing at Currencies Direct, says, ‘Following Labour’s resounding defeat in the European elections and the continuing uncertainty over Gordon Brown’s future, sterling has slumped below the important psychological barrier of $1.60.
 
‘Until the currency markets get clarity on the PM’s future, then sterling will continue to sell. And with little economic data scheduled for release this week, it seems that Sterling’s fate will once again be decided by the week’s political wrangling.’