The pound fell sharply against its major counterparts in the European session on Monday, after U.K. Prime Minister Theresa May called off tomorrow's Parliamentary vote on Brexit deal as her plan may have defeated amid stiff opposition from Tory rebels.

The decision came after the PM failed to get support from enough of Tory MPs who said they were against the deal.

More top Tories said they would vote against the deal, including May's former policy chief George Freeman MP.

May will address the UK House of Commons this afternoon, followed by a statement from Commons leader Andrea Leadsom and then Brexit Secretary, Steve Barclay.

The chaos comes ahead of EU summit in Brussels on Thursday and Friday, at which May is under pressure to renegotiate more concessions to the withdrawal agreement agreed with the European Union.

European shares fell as weak data from China and Japan, Italy's budget dispute with the European Union and heightened trade worries sapped investors' appetite for risk.

French President Emmanuel Macron is set to hold talks with trade unions and employers' organizations today, in a bid to defuse weeks of unrest in Paris and other cities over rising gas prices and taxes.

U.K GDP growth slowed to 0.4 percent in the three months to October from 0.6 percent in the third quarter of 2018, official data showed.

The currency showed mixed trading against its major counterparts in the Asian session. While the pound rose against the greenback and the yen, it held steady against the franc. Against the euro, it declined.

The pound declined to 1.2606 against the greenback, its weakest since June 2017. The next possible support for the pound is seen around the 1.25 level.

The U.K. currency fell to near a 4-month low of 142.37 against the yen, compared to 143.43 hit late New York Friday. On the downside, 140.00 is seen as the next likely support level for the pound.

The pound dropped to 1.2480 against the franc, its weakest since September 7. The pound is poised to find support around the 1.23 mark.

The pound fell to more than a 3-month low of 0.9047 against the euro, after rising to 0.8957 at 5:15 pm ET. The pound is seen finding support around the 0.92 mark.

Preliminary figures from Destatis showed that Germany's merchandise exports grew more-than-expected in October and at the fastest pace in five months.

Exports increased a calendar ad seasonally adjusted 0.7 percent from September, when they declined 0.4 percent. Economists had forecast a 0.4 percent gain for October.

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