* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
* Sterling limps into Asian trading after big fall
* Weak data knocks euro lower
* Brexit vote could set tone for global financial markets
(Adds details on ECB, RBA)
By Stanley White
TOKYO, Sept 3 (Reuters) - Sterling neared its weakest
against the U.S. dollar in more than two years on Tuesday amid
mounting uncertainty as British lawmakers prepared to vote on
the first stage of a plan to block Prime Minister Boris Johnson
from pursuing a no-deal Brexit.
Johnson's opponents will put forward a vote that would
enable them to seize control of the parliamentary agenda on
Wednesday to try to pass legislation that would force Johnson to
seek a three-month delay to Britain's EU exit. Johnson has made
it clear that if the government was defeated, it would hold a
vote on Wednesday to approve an early election, most likely to
be held on Oct. 14. "The pound is being sold all over the place, because the
political risk has forced us to recognise that a no-deal Brexit
is possible," said Junichi Ishikawa, senior foreign exchange
strategist at IG Securities in Tokyo.
"At this point, I see no reason to stay long in sterling."
Sterling fell 0.23% to $1.2035 GBP=D4 in Asian trading on
Tuesday, having tumbled 0.8% on Monday, its biggest decline in
more than three weeks.
The euro held onto Monday's 0.7 % gain against the pound to
stand little changed at 90.90 pence EURGBP=D3 .
A messy exit from the European Union certain to weaken the
pound, but it could roil other currencies and other markets as
investors adjust their positions to exit trades in riskier
assets.
U.S. financial markets were closed on Monday for a public
holiday, but weakness in other major currencies and a slight
rise in U.S. Treasury yields in Asia helped the dollar index
=USD rise 0.22% on Tuesday to 99.284.
The euro fell to its weakest in more than two years against
the dollar after a survey on Monday showed European
manufacturing contracted for seven straight months, reinforcing
expectations that the European Central Bank will ease monetary
policy at a meeting next week. The euro EUR= fell to $1.0954 in Asia on Tuesday, its
weakest since May 2017, with sentiment damaged by the break
below the key $1.1000 level last week.
The ECB's Governing Council holds its next monetary policy
meeting on Sept. 12 and has all but promised a stimulus package,
with economic growth faltering amid a global trade war and
Germany's manufacturing sector already in recession.
Market expectations are that it will carry out several
interest rate cuts in the coming year, along with a fresh round
of bond purchases, commonly known as quantitative easing.
Elsewhere in the currency market, the Chinese yuan CNH=D3
hit a record low of 7.1960 per dollar in early offshore trade
after Bloomberg News reported that Chinese and U.S. officials
are struggling to agree a schedule for a round of trade
negotiations that had been expected this month.
In onshore trade, the yuan CNY=CFXS briefly fell to 7.1825
per dollar, the lowest since February 2008, before recovering to
7.1811.
The Reserve Bank of Australia's decision to leave interest
rates unchanged at a record low of 1% saw the Australian dollar
AUD=D3 ease 0.11% to $0.67111. Economists expect the RBA to
cut two more times to boost inflation and support a stuttering
economy, a Reuters poll showed.
The New Zealand dollar NZD=D3 skidded to $0.6270, the
lowest since September 2015. The kiwi has fallen for the past
seven trading sessions as weak data last week on business
confidence bolstered the case for further interest rate cuts.