Sterling drops as after uncertainties surrounding Theresa May

British pound

Sterling was lower on Monday’s opening due to the concerns surrounding the British Prime Minister Theresa May. This is after a released report suggested that about 40 Conservative MP’s are equipped for a leadership challenge in the midst of crucial Brexit meetings.

More than 40 members of the parliament from the Conservative Party  of Theresa May have agreed to sign a letter that is non-confidential in her, according to the Sunday Times. Those numbers were short because there are eight needed more to trigger a party leadership contest. This mechanism could force the British Prime Minister from the office and be replaced.

The British pound was last seen at $1.3118, or 0.55 percent lower. The currency was dragged away from an eight-day peak of $1.3229 touched on the previous session after unexpectedly higher figures in Britain’s economy. Meanwhile versus the Japanese yen, sterling was 0.5 percent lower at 149.09 yen.

According to Societe Generale’s director of Forex Kyosuke Suzuki, there has been released headlines last weekend that showed negativity for the British prime minister and it was later endured by the market which placed the sterling on the red zone.

In other currency news: the index which tracks the value of the greenback against its major opposing currencies, the U.S. dollar index, inched up by 0.2 percent at 94.561. This was after the index added 6 basis points due to the rise in Treasury yields last Friday.

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