Currency – The pound slides on the political pressure


© Reuters. The book slips out of the political pressure

Investing.com – The pound declined on Monday, following reports that the First british minister Theresa May could face a leadership challenge at a critical time in the talks on the Brexit, while the dollar rose against a basket of currencies.

The GBP/USD key 1.3062 to by 07:55 AM AND (12:55 PM GMT), down 0.71% for the day.

Sterling has suffered a lower pressure after it was revealed this weekend that forty members of the conservative Party are ready to push it at the start of the 10 Downing Street, paving the way for a challenge of formal leadership.

In the meantime, the secretary for Foreign Affairs, Boris Johnson, and the secretary for the environment, Michael Gove, wrote a letter to May, stating “some parts of the government” who do not prepare in a hard Brexit.

The letter triggered the nervousness of investors about the stability of the government so that the Parliament starts to debate the draft law on the Brexit.

The euro advance to a higher week against the pound with EUR/GBP up 0.66% at 0.8900.

The euro declined against the dollar, with EUR/USD down 0.09% to 1.1655.

The index dollar, which measures the greenback’s strength against a basket of six major currencies, ahead of 0.12% to 94.41.

The index ended last week down 0.61% while the investors are disappointed by the delay as experienced by the tax reform.

The Senate republican has published on Thursday a reform of taxation different from that made by the republican, underscoring the challenge of unifying the two documents before the end of the year.

The hope that tax reform to be published gives a boost to the dollar since mid-September. Some traders believe that this reform will only boost the growth, thus fuelling the pressure on the Federal Reserve to increase its rates.

The dollar slips to a more everyday low against the yen, with USD/JPY down 0.22% at 113.30.

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