Sterling is volatile again amid renewed talks of a challenge to Theresa May’s leadership. Against the dollar, the pound was down 0.4 per cent and 0.2 per cent against the euro in trading today.
A media report has stated that May, who is expected to update Parliament on the status of Brexit talks later today, is facing calls for a no-confidence motion.
In a bullish message to the House of Commons, May is expected to tell the MPs that “95% of the UK’s divorce deal with Brussels has been settled’.
According to Fiona Cincotta from CityIndex: “The pound is at sea as PM Theresa May prepares to tell Parliament that a Brexit deal is 95% in place. The remaining 5% consists of the contentious Irish border issue and has been the hardest part to resolve. With resolution of the issue seemingly not any closer than last week sterling is weakening against the dollar but not as much as against the euro. The common currency is showing surprising resilience in the face of Italy’s looming conflict with the EU over its budget and renewed weakening of Italian bond market.”
According to Reuters, currency investors are worried about the prickly Irish border issue and disagreements within the government over Brexit.