Latest News

Pound sinks on uncertainty surrounding Theresa May

Thursday, October 05, 2017

Print this page Email A Friend!


LONDON, United Kingdom (AFP) — The British pound sank today as investors fretted over Prime Minister Theresa May's political future one day after a "shambolic" speech to the Conservative Party's annual conference, analysts said.

By about 1515 GMT, the sterling had dived to a one-month low at $1.3122.

Earlier, the European single currency had hit a three-week pinnacle at 89.33 pence per euro.

"After Theresa May's speech at the Tory party conference on Wednesday, there are rumours that she will be asked to step down by her own party," said City Index analyst Kathleen Brooks.

"The prospect of a leaderless UK in the middle of the Brexit process, or even worse, a Prime Minister Boris (Johnson), are right to unnerve sterling traders."

She added that the market "seems to be ignoring some fairly solid economic data, progress in the Brexit talks, and a weaker dollar and euro, in favour of politics".

May's conference speech dominated Thursday's newspapers, which had sympathy for her bad luck but bleak warnings about what the string of misfortunes signalled for her leadership.

The premier was hoping to use the keynote speech to reassert her authority following a dismal election showing.

However, she was interrupted by a comedian handing her a fake notice of unemployment, before succumbing to a persistent cough in front of a collapsing set.

"Sterling is coming under pressure again ... following speculation that Theresa May's position is increasingly under threat following yesterday's shambolic speech," added Oanda analyst Craig Erlam. "A change of leadership so soon after the election and just as Brexit talks appear to be making some progress may seem like a ludicrous idea -- but a leadership challenge has been brewing since the disastrous election campaign."

ADVERTISEMENT




POST A COMMENT

HOUSE RULES

1. We welcome reader comments on the top stories of the day. Some comments may be republished on the website or in the newspaper � email addresses will not be published.

2. Please understand that comments are moderated and it is not always possible to publish all that have been submitted. We will, however, try to publish comments that are representative of all received.

3. We ask that comments are civil and free of libellous or hateful material. Also please stick to the topic under discussion.

4. Please do not write in block capitals since this makes your comment hard to read.

5. Please don't use the comments to advertise. However, our advertising department can be more than accommodating if emailed: advertising@jamaicaobserver.com.

6. If readers wish to report offensive comments, suggest a correction or share a story then please email: community@jamaicaobserver.com.

7. Lastly, read our Terms and Conditions and Privacy Policy



comments powered by Disqus
ADVERTISEMENT

Poll

ADVERTISEMENT
ADVERTISEMENT

Today's Cartoon

Click image to view full size editorial cartoon
ADVERTISEMENT