Pound at 3-month Trough on Brexit Worries
The Pound Sterling continues to wallow close to a 3-month trough as Theresa May's future and her Brexit proposal are pondered in the UK Parliament. The Prime Minister is expected to be asked to set a definitive date for her departure from the post, and she faces the threat of a confidence vote in June. If she pushes forward with a vote on her Brexit agreement, it will have been the fourth such attempt, but analysts agree that there is little chance it will pass. Opposition lawmakers and skeptics within the Conservative Party are set to reject her proposal. Markets are already preparing for the growing possibility that Britain will leave the European Union without a deal in place on October 31st.
As reported at 10:58 am (GMT) in London, the GBP/USD was trading lower at $1.283, down 0.0919%; the pair has ranged from a trough of $1.2821 to a high of 1.2852 in today's trading day. The EUR/GBP was trading higher at 0.874 Pence, a gain of 0.1742%; earlier, the pair had hit a peak of 0.87434 Pence.
US-Sino Trade Rift Weighs on GBP
While the Brexit noise is certainly the driver of Pound sentiment, the concerns over the global economy, thanks in large part to the growing trade rift between the US and China are also weighing on the currency. That concern is providing some support to safe haven currencies with the Japanese Yen the main benefactor; currently, the GBP/JPY is trading at 140.5920 Yen, down 0.10%, with the pair ranging from 140.209 Yen to 140.770 Yen today.