Best Exchange Rates

Pound Tumbles as May Faces another Cabinet Reshuffle

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

Sterling

The Pound (GBP) saw significant losses against the other majors on Wednesday as international development secretary Priti Patel resigned from her position following a number of undisclosed meetings with Israeli officials.

This is the second cabinet resignation within in a week after Sir Michael Fallon quit as defence secretary a few of days ago, prompting fears of instability at the top of government as Theresa May is forced to make another reshuffle.

Sterling may look to mount a recovery later today however as the sixth round of Brexit talks get underway, with investors hoping that signals that both sides wish to see negotiations sped up may help to accelerate the pace of talks.

Euro

The Pound Euro (GBP EUR) exchange rate tumbled by around half a cent yesterday as the developing political crisis surrounding Patel caused the pairing to slump.

However also adding to Sterling’s woes yesterday was a report from the FT suggesting that a number of Banks are warning of significant job losses in the City of London unless there is more clarity on Brexit from the government.

Further strengthening the single currency this morning was the release of Germany’s latest trade figures which revealed that the nation’s trade surplus swelled from €20.1bn to €24.1bn in September.

US Dollar

Sterling plummeted against the US Dollar (USD) on Wednesday as markets feared that May’s government is becoming increasingly unstable following numerous scandals in recent weeks.

While the pairing rallied in overnight trade as these gains proved to be short lived as the pairing sank again on Thursday morning as investors soured on the Pound on fears the government’s instability could hamper the last round of Brexit talks.

However the US Dollar could be in for some volatility as well today as the US senate unveils its own tax-cut bill, with any major departure from Trump’s proposals likely to weigh heavily on the US currency as it further frustrates the process.

Canadian Dollar

The Pound Canadian Dollar (GBP CAD) exchange rate continued to come under pressure yesterday as oil stabilised just below a two-year high, helping to bolster the oil-correlated ‘Loonie’.

Australian Dollar

Sterling is trading close to a weekly low against the Australian Dollar (AUD) this morning as Theresa May’s scandal hit cabinet does little to inspire confidence in the UK government.

New Zealand Dollar

The Pound New Zealand Dollar (GBP NZD) exchange rate is tumbling again this morning after the pairing’s gains last night in the wake of the Reserve Bank of New Zealand (RBNZ) decision to leave interest rates on hold proved to be short lived.

TorFX Author: TorFX

“Our company’s mission is to provide outstanding exchange rates, expert guidance and a simple, friendly service that people will want to recommend to others.” – Jon Beddell (CEO). Contact TorFX for an FX Quote – UK & Europe – Australia & NZ.

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


DISCLAIMER

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



COPYRIGHT

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.