Best Exchange Rates

Pound Tends Lower as Theresa May Faces Possible Leadership Challenge

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


GBP/USD 1 Week Chart

The Pound (GBP) slid lower against the majority of its peers on Thursday as markets became increasingly worried about the possibility that Theresa May could be ousted as Prime Minister.

While such reports have shadowed the PM ever since the general election earlier in the year, a disastrous speech by May at the Conservative party conference seems to have emboldened her critics and led to renewed calls for her resignation.

While political uncertainty is never welcomed by markets, investors are particularly worried about what impact a leadership battle could have on Brexit negotiations.


The Pound Euro (GBP EUR) exchange rate fell by around half a cent yesterday as markets became increasingly perturbed by the political climate in the UK.

The single currency was also bolstered by the release of the minutes from the European Central Bank’s (ECB) most recent policy meeting, with investors welcoming discussions by policymakers about plans to taper their stimulus programme next year.

Meanwhile, further strengthening the Euro this morning was the publication of Germany’s latest factory order figures as data showed that they rebounded strongly from -0.4% to 3.6% in August.

US Dollar

Sterling slumped to a new four-week low against the US Dollar (USD) yesterday as the US Chamber of Commerce reported that the domestic trade deficit shrank faster than expected in August.

Also pushing the ‘Greenback’ higher on Thursday were comments by Philadelphia Federal Reserve President Patrick Harker, who signalled that he is still anticipating a December rate hike despite inflation still remaining below target.

Meanwhile, the US Dollar could climb even higher this afternoon with the release of the latest US non-farm payrolls report, with some analysts forecasting that figures may come in above target after some upbeat employment data earlier in the week.

Canadian Dollar

The Pound Canadian Dollar (GBP CAD) exchange rate rallied from a three week low yesterday as Canada’s latest trade balance showed that the domestic trade deficit unexpectedly grew in August.

Meanwhile, the ‘Loonie’ may slip again later today as economists forecast that Canada’s unemployment rate will have risen slightly in September.

Australian Dollar

Sterling found some momentary respite against the Australian Dollar (AUD) overnight on Thursday following suggestions that Australia’s recent decline in retail sales could prompt the Reserve Bank of Australia (RBA) to contemplate cutting interest rates.

New Zealand Dollar

After tumbling nearly a cent on Thursday morning the Pound New Zealand Dollar (GBP NZD) exchange rate is currently holding steady as both currencies are subdued by domestic political uncertainty.

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

BER Newsletter

Subscribe for the latest exchange rates, currency news and special offers directly to your inbox.

Best Exchange Rates - We make it Easy to Compare Exchange Rates & Fees of Banks and Currency Exchange & Payment Providers

Level 2, AMP Tower, 50 Bridge Street, Sydney, NSW 2000, Australia

Disclaimer | Copyright | Privacy Statement


Best Exchange Rates is an information only service. By browsing on the website, using our comparison tools or FX provider referral service, you are asking Best Exchange Rates to provide you with information about currency exchange products & services from multiple financial institutions.

We will try to show you a range of products & services in response to your request for information. The search results do not include all providers and may not compare all features relevant to you. In giving you product information we are not making any suggestion or recommendation to you about a particular product.

If you decide to conduct foreign exchange you will deal directly with a financial institution, and not with Best Exchange Rates. Rates and product information should be confirmed with the relevant financial institution, see our terms of use for further details.

Best Exchange Rates may receive fees or other benefits in relation to activity on the Best Exchange Rates website. Best Exchange Rates may receive remuneration for vendor referral links. 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.

Read our Full Terms of Service


This website and its contents are the copyright of BEST EXCHANGE RATES PTY LTD © 2009-17. All rights reserved.

Any redistribution or reproduction of part or all of the contents in any form is prohibited other than the following. You may print or download contents to a local hard disk for your personal and non-commercial use only. You may copy some extracts only to individual third parties for their personal use, but only if you acknowledge the website as the source of the material.

You may not, except with our express written permission, distribute or commercially exploit the content. You may not transmit it or store it on any other website or other form of electronic retrieval system.

For more details or request distribution right please contacxt us here.