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British Pound Trades Lower as Rebel MPs Oppose Latest Brexit Plan

July 11, 2018 at 11:29 by Simon Mugo

Close-up of the UK pound noteThe British pound today traded lower against the US dollar even as Theresa May‘s government is buffeted by rebellions from members of her Conservative Party who have resigned from their positions. The pound’s decline was further accelerated by the risk-off sentiment among investors triggered by the imposition of more tariffs by the US government on Chinese exports.

The GBP/USD currency pair today declined from a high of 1.3285 to a low of 1.3233 and was on a downtrend at the time of writing.

The cable has been negatively affected since the beginning of this week by resignations of key members of Theresa May’s government in opposition to her ‘soft Brexit’ negotiation plan. Two cabinet ministers Boris Johnson and David Davis resigned on Monday. Yesterday, two Conservative Party vice-chairs Maria Caulfield and Ben Bradley also resigned just before a joint press conference between Theresa May and German Chancellor Angela Merkel. Despite the resignations, PM May stated that she still believes that she will deliver a smooth Brexit while still holding on to her leadership position .

The heightened US-China trade tensions further boosted the US dollar against the pound even as Donald Trump‘s administration imposed tariffs on $200 billion worth of Chinese exports to the USA.

The currency pair’s short-term performance is likely to be affected by the Bank of England Governor Mark Carney‘s speech later today in Boston, Massachusetts as well as Brexit developments.

The GBP/USD currency pair was trading at 1.3249 as at 11:20 GMT having declined from an initial high of 1.3285. The GBP/JPY currency pair was trading at 147.33 having rallied from a low of 146.78.

If you have any questions, comments or opinions regarding the Great Britain Pound, feel free to post them using the commentary form below.

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