Sterling traded near a two-week low on Wednesday as investors prepared for warnings from the government and the central bank on how much damage a no-deal Brexit would do to the struggling British economy.
Barely four months before Britain is due to leave the EU, Prime Minister Theresa May has failed to get much support from parliament for the agreement sealed with EU leaders on Sunday.
BoE Governor Mark Carney and finance minister Philip Hammond have both previously stressed the importance of a transition period, as included in May's plan, to ease Britain out of its four-decade membership of the EU.
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