The Pound Sterling edged lower versus the US Dollar as Theresa May, the UK Prime Minister, appears to be facing a new challenge leadership challenge which may play a hand in her attempt to gain favorable terms for the Brexit. According to one committee report, the legislation crafted by the Prime Minister was not without “fundamental flaws.” Though there is still well over a year before the UK exits the European Union, the divisions within the UK government, and in the Prime Minister’s own Conservative party, are unclear as to what they exactly desire the “relationship” between the UK and the EU to be at the conclusion of the membership. That now is having an impact on investors and is weighing on the Pound.
As reported at 11:01 am (GMT) in London, the GBP/USD was trading at $1.4089, down 0.46% and just off the session trough of $1.4087 while the peak for the trading day stands at $1.4159. The EUR/GBP was trading 0.26207% higher at 0.88049 Pence; the pair has ranged from a session low of 0.87700 Pence to a peak of 0.88100 Pence.
Economic Data Provides Support
One currency strategist puts the Pound’s softness directly on the UK Prime Minister. According to him, the UK is about to enter a crucial phase and the leadership challenge Ms. May is facing presents a serious threat. Despite that, economic data has kept some investors upbeat; last week, preliminary GDP figures (year-over-year) for the 4th quarter of 2017 were unexpectedly higher at 1.5%, besting economists’ forecasts of 1.4%.