LONDON (Reuters) - Sterling turned negative on Monday, with traders pointing to comments from Prime Minister Theresa May that an extension of the Brexit transition period was unlikely as the possible reason, as well as market talk of a large euro purchase.
The pound fell as much as 0.3 percent to hit a day's low versus the dollar of $1.2796 GBP=D3. The move came after May said she wanted any post-Brexit transition phase to have ended by the time the country is due to hold a national election in 2022.
Against the euro, the pound also dropped to the day’s low of 89.32 pence EURGBP=D3.
Reporting by Tom Finn; Editing by Tommy Wilkes