The pound dropped to its lowest level since June 2017 today as media reports emerged prime minister Theresa May will delay a parliamentary vote on her Brexit deal.
There have been widespread reports the critical vote scheduled for tomorrow is going to be delayed with May scheduled to address MPs later this afternoon.
The pound fell to just below £1.27 against the US dollar at 12.30 after the BBC reported the vote was being pulled.
Sterling also extended its losses against the euro trading down 0.7 per cent at 90.18 pence which is the weakest it has been since early September.
Earlier today the European Court of Justice ruled the UK is free to unilaterally revoke the notification of its intention to withdraw from the EU.
It says this possibility exists for as long as the withdrawal agreement concluded between the EU and that member state has not entered into force or, if no such agreement has been concluded.
The judgment adds the revocation must be decided in accordance with national constitutional requirements.
This ruling potentially gives a boost to opponents of Britain’s decision to leave the EU who have campaigned for there to be a second referendum.
There has been speculation about whether May’s Brexit plan will be endorsed by parliament and the consequences of its failure for the government.
Over the weekend Brexit secretary Stephen Barclay said the vote will not be delayed and the government is set on winning it.