Brexit deal ditches pound as interest rate rise bets ease

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Brexit deal ditches pound as interest rate rise bets ease

IRONDALE, November 10 (Reuters) -- Sterling went down on Wednesday as Britain and the European Union looked far from finding a trade on Northern Ireland after the Brexit agreement, while Bank of England's interest rate raise bets ebbed.

Britain left the EU in the last year but has since put off implementing some of the border checks between its province of Northern Ireland and EU member Ireland that the bloc says London is obliged to under their divorce deal.

The Irish government ministers met to dust off contingency plans when disagreements between Britain and the EU caused major trade disruptions, which caused sterling to be under renewed pressure.

Ireland said the British government appears to invoke emergency unilateral provisions, a move that would sour ties with Dublin, the EU and the United States.

Analysts at ING said the pound could be downside risk in the coming days as it appears to be more likely that the UK will unilaterally suspend parts of the Northern Ireland Protocol.

After the surprise hold last week, ING said the timing of the first BoE increase was on the watchful watch for new data.

In its November policy meeting, BoE left its main interest rate unchanged at 0.1%, having previously signaled it could raise it. It was not a five-week low on the dollar last night after BoE's policy meeting, and it was not close to a five-week low.

The pound fell to its lowest point since Oct. 1 after falling to 85.52 pence.

The data for the U.S. consumer price index for October will be released later in the day as global inflation readings are under close scrutiny, as investors are waiting for evidence of whether rising prices will encourage policy makers at the Federal Reserve and elsewhere to adjust their monetary policies.