Investing.com – The Pound Sterling is changing, just above a low of four months Friday in Europe, while fears about Brexit are back to haunt the currency after a month of relative calm.
At 09.40 am, the Book was 1,2781$ and had fallen to 1,1432 against the Euro, on fears that the Uk leaves the EU without any sort of arrangement to cushion the transition.
The Pound has slipped after Theresa May has told his colleagues in the party that it would establish a timetable for his departure the next month, regardless of the outcome of the vote of the proposed withdrawal agreement from the EU to the House of commons to the fourth request. This vote is scheduled for the first full week of June and there are few signs of success.
Given the pro-Brexit members of the Conservative party, it is likely that May be replaced by a “Hard Brexiteer” more comfortable with the prospect of leaving the EU without an agreement. According to reports, the former minister of Foreign Affairs, Boris Johnson, had confirmed that he would stand for the party leadership are directly responsible for the largest part of the decline of the Pound Sterling on Thursday.
The Dollar has further strengthened against the chinese Yuan after the hardening of the rhetoric in Beijing. The Yuan offshore has fallen to 6,9449, its lowest level in six months, while the official rate is passed over 6.90 for the first time since December.
“We can’t believe that the United States has a sincerity that is substantial in the progress of the negotiations”, said a column of opinion of the official news agency Xinhua. “If the United States ignore the will of the chinese people, they are likely to receive no effective response on the part of China.”
Figures published earlier this week indicated a slowdown in industrial production and retail sales in April, even before the trade negotiations are not deteriorating.
“If the slowdown of the activity data continued in may and June, the growth of china’s GDP growth could fall below 6.0% year on year in Q2 2019,” said Iris Pang, an economist at ING. She noted, however, that the slowdown in April was probably reflected a lesser urgency on the part of Beijing to stimulate the economy, given that trade negotiations seemed to be progressing well at this time. This emergency could easily go back now, she added.
Despite a loss of ground against the Yen, the Dollar index, which measures the greenback against a basket of six major currencies, reached a peak of two weeks 97,708 before withdrawing to 97,607.