The growing divide within the UK Prime Minister's own party became apparent after a Parliamentary vote yesterday did little to advance Theresa May's Brexit-related agenda. That earlier pushed the Pound Sterling to an 8-month trough against the US Dollar. Analysts say that the PM's acceptance of certain demands made by Brexit hardliners only exposed how vulnerable she really is in Parliament, resulting in members of her Conservative party from both sides of the Brexit issue being on the attack and hampering her ability to proceed with negotiations with EU officials.
As reported at 11:22 am (BST) in London, the GBP/USD was trading at $1.3243, a gain of 0.04% and coming up from the session low of $1.3228; the pair had earlier hit a peak of $1.3269. The EUR/GBP is trading at 0.88515 Pence, up 0.07%; the pair has ranged from 0.88430 Pence to a peak of 0.88643 Pence.
BoE's Mark Carney Weighs In
Earlier in the day, the Governor of the Bank of England, Mark Carney, testified before the Treasury Select Committee. In his testimony, he issued a clear warning of the dire impact on the UK economy if the government fails to secure a Brexit deal. According to him, it would have a material impact on interest rates, suggesting that monetary tools would be used to stimulate the economy if a disorderly Brexit should occur.