© Reuters. The book under pressure for the Brexit
Investing.com – The pound sterling has suffered downward pressure Monday, while the recovery in the dollar and concerns renewed on the Brexit still weigh, and with the bill of withdrawal from the european Union of the british Prime minister Theresa May in sight.
The GBP/USD gives up 0.68% to 1.4066 at 06:31 AM ET (11:31 AM GMT), ranging from a high of 1.4344 Thursday.
The pound was under pressure as the dollar regained some ground against a basket of currencies, but gains in the greenback were kept in check by reason of doubts as to the commitment of the administration to Trump commitment to a strong currency.
The index dollar, which measures the greenback’s strength against a basket of currencies, gaining 0.27% to 89.11, extending its gains after having reached 88.25 on Thursday.
The greenback fell last week after comments by us Treasury secretary Steven Mnuchin on how a weaker currency benefits the trade. The currency was then slightly increased after president Donald Trump said that Mnuchin had been misinterpreted, but then resumed its slide.
Sentiment on the pound deteriorated after a committee of legislators, the british had said on Monday that the legislation aimed to put an end to the accession of Great Britain had “fundamental defects” and should be significantly altered, even if it has already been passed by the House of Commons.
These remarks came when the House of lords is prepared to debate the legislation this week.
May is facing a rebellion within his own party that could threaten his leadership, on the best route to take outside of the EU, whether Britain should quit in march 2019.
It undergoes an increasing pressure to offer more clarity on what is expected by Great Britain of the Brexit, or face the growing risk of a vote of no confidence.
The euro reached a one-week summit against the pound, with EUR/GBP up 0.32% to 0.8811.