Sterling at one-week low as Labour spokesman comments spur profit taking

Sterling slipped to one-week lows on Tuesday after the opposition Labour Party's finance spokesman John McDonnell was quoted as saying few Labour lawmakers would back Prime Minister Theresa May's Brexit deal at the upcoming parliament vote.

The pound was down half a percent against the dollar to hit a session low of $1.3113 while against the euro it slipped 0.4 percent to 86.38 pence.

Traders said the comments had been used by market players to take some profits off recent sterling gains after the currency has strengthened for two straight months.