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Pound Plummets as May Faces Challenging Week

Categories: AUD, CAD, EUR, GBP, Markets, News, NZD, USD

Sterling

The Pound (GBP) plummeted against the other majors at the start of this week’s session as Theresa May looks to be in for troubling week, with a report that up to 40 Conservative MPs are preparing for a leadership challenge.

The PM also faces the possible collapse of Brexit negotiations, as the EU’s chief negotiator, Michel Barnier suggests that he is planning for such an event if the UK fails to meet his two-week deadline to clarify its position on key issues.

Euro

The Pound Euro (GBP EUR) exchange rate dove by around half a cent this morning as investors flee Sterling with political pressures mounting against the PM.

The news that rebel Tories are close to gaining the support need to trigger a formal leadership contest against May has done little to inspire confidence in the stability of the UK government, especially following last week’s troubles.

Meanwhile the focus for EUR investors at the start of this week is likely to be on Germany’s latest GDP flash tomorrow, with the first reading of Germany’s third quarter growth likely to strengthen the Euro if the country continues to expand at a steady pace.

US Dollar

Sterling is down by around a cent against the US Dollar (USD) this morning as Barnier’s remarks about the collapse of Brexit talks rattled markets.

While the EU’s chief negotiator stressed that this was not his preferred outcome, he suggested that ‘it’s a possibility’, with the two sides continuing to butt heads over the issue of the UK’s financial obligations.

On the data front, the US Dollar may find itself struggling to hold on to its early gains this week as economists forecast that Wednesday’s CPI figures will reveal a downturn in inflation in October.

Canadian Dollar

The Pound Canadian Dollar (GBP CAD) exchange rate struck a new three-week low this morning as the combination of political troubles weighing on Sterling and the ‘Loonie’ being buoyed by stable oil prices held down the pairing.

Australian Dollar

Sterling tumbled by over a cent against the Australian Dollar (AUD) during the Asian session this morning, with the ‘Aussie’s gains being extended by a speech by Reserve Bank of Australia (RBA) deputy governor, Guy Debelle who suggested that strong business investment is making the Bank more upbeat in its outlook.

New Zealand Dollar

The Pound New Zealand Dollar (GBP NZD) exchange rate has forces to retreat again this morning, relinquishing much of the pairing’s gains from the end of last week’s session as investors sour on Sterling in light of growing political concerns.

TorFX Author: TorFX

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Please note that the opinions of our authors are their own and do not reflect the opinion of Best Exchange Rates and should not be taken as a reference to buy or sell any financial product. Full Disclaimer

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