Pound Lower on May Leadership Threat
Against the US Dollar, the Pound Sterling struck a 3-week trough while FX traders await the outcome of a meeting between the Prime Minister and members of her party. The discussion will no doubt revolve around her Brexit-related positioning and their disagreement with her vision for the way forward. In recent days, the Conservative Party has discussed the possibility of a no-confidence vote against Ms. May. With only about five months left before Britain officially withdraws from the European Union, time is critical for a resolution to the various impasses. The threat to the Prime Minister's leadership coupled with the possibility that an agreement won't be found has weighed heavily on the Pound.
As reported at 11:35 am (BST) in Tokyo, the GBP/USD was trading lower at $1.29, down 0.62% and striking a new low for the session; the pair earlier hit a peak of $1.2991. The EUR/GBP is trading lower at 0.8831 Pence, down 0.02%; the pair has ranged from 0.88219 Pence to 0.88442 Pence in today's session.
Euro Weighed by Germany Data Disapointment
In the Eurozone, disappointing PMI surveys from Germany put a dent in enthusiasm for the Euro. Markit reported that Germany's preliminary surveys for October were all lower than predicted. The Manufacturing PMI reading was lower at 51.2, down from the previous 52.5 and lower than the 52.4 which had been predicted. The Services Sector PMI reading was 53.6, against 55.5 expected, The Composite Survey fell to 52.7, down from 55.0 in the previous reading and well below the 54.8 forecast. As the Eurozone's economic driver, any disappointment in Germany's fundamental data pressures the common currency. The EUR/USD was trading lower at $1.1408, down 0.57%.