Why did sterling drop to a two-month low today?

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Sterling Reaches Two-Month Low Amid Fading Brexit Deal Hopes and Pressure on Prime Minister May

Sterling declined to its lowest point in two months today as optimism for a breakthrough in Brexit negotiations between the governing party and the opposition waned. Concurrently, British Prime Minister Theresa May faced increasing calls for her resignation, contributing to the currency's slide.
Stalled Government and Opposition Talks

Discussions between the government and the Labour party aimed at establishing a mutually agreeable Brexit accord have yielded minimal progress. Analysts noted that these crucial talks, which resumed following an Easter recess, have struggled to gain traction, with weekend media reports highlighting intensified pressure on Prime Minister May to either find a resolution or announce her departure date.
Planned Parliamentary Vote and Market Reaction

Adding to the uncertainty, a report indicated Prime Minister May's intention to hold another vote on her Brexit agreement, which has already been rejected on three prior occasions, within the coming week. This high-stakes move seeks to overcome the ongoing deadlock. In response to these developments, the pound fell to a low of $1.2943, marking a 0.2 per cent decrease on the day and its weakest performance since February 19.
Broader Economic Factors and Analyst Outlook

A general strengthening of the US dollar also exerted downward pressure on sterling. Despite a recent significant decrease in sterling's volatility following the agreement to delay Britain's departure from the European Union by up to six months, thereby mitigating immediate no-deal Brexit risks, the currency remains sensitive to Brexit-related news. Analysts at MUFG anticipate that with the House of Commons reconvening, Prime Minister May will intensify Brexit negotiations this week, leading to an expected increase in pound volatility.

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Why did sterling drop to a two-month low today?

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