Monday, pound sterling stood firm as British Prime Minister Theresa May struggles and reunites the Conservative Party after a dreadful election that could possible disrupt the Brexit negotiations. The pound had tumbled by as much as 2.5% in the previous session to its lowest since mid-April after no single party won a clear claim to power in the United Kingdom election on June 8.
The pound last traded at $1.2756, rising up to 0.1% on the day, after slipping 1.7% on Friday, which was considered as the currency’s biggest one-day drop on about around eight months.
In relation to the polls and headlines about the UK elections, Prime Minister Theresa May is now trying to unite her disappointed Conservative Party to not only support here with the Brexit talks but as well as to negotiate a deal with a small Northern Irish party that will enable her to keep her power and position.
According to Shinichiro Kadota, senior FX strategist for Barclays in Tokyo, There are still delicate surrounding issues, that includes how the British government’s stand towards the controversial Brexit talks might change. In addition, with regards to the country’s currency, Shinichiro Kadota said that the lack of moves—in sterling, is more because the market is waiting for fresh information, rather than a sign that is settling down.
In accordance to this, Negotiations on Britain’s exit from the European Union are set and due to begin next Monday.