POUND EURO LIVE: Pound SINKS amid fears Theresa May to be REPLACED by Boris Johnson


pound euro exchange rateGETTY

The triturate has dropped to a three-week low against the euro

Sterling tumbled to 1.116 against the euro and down to 1.30 against the US dollar amidst calls for Theresa May to be forced out as party leader and Prime Minister.

The beat out had been boosted in recent weeks by solid economy data and demands the Bank of England will soon raise interest rates.

But Brexit negotiations and the possible for a change in leadership are now sending fears through markets.

Earlier this week, the Prime Plenipotentiary gave a keynote speech at the Conservative Party Conference, but it was overshadowed by her coughing and a prankster smash the stage.

The appearance prompted Nigel Farage among other to dub Mrs May and the discourse a “disaster”. 

It comes after Mr Johnson publicly laid out a Brexit blueprint, which occurred to show the foreign secretary’s ambition to take greater control of the UK’s take from the European Union (EU).

pound to euro chart theresa mayBloomberg

The pound has plunged against the euro as markets fears for Theresa May as Prime On

The political turmoil from a change in leadership would likely transaction the pound a heavy blow.  

Kathleen Brooks, research director at See Index, said: “The market seems to be ignoring some fairly sturdy economic data, progress, albeit slow, in the Brexit talks, and a weaker dollar and euro in favour of government.

“After Theresa May’s speech at the Tory party conference on Wednesday, there are news that she will be asked, forced, to step down by her own party.

“The chances of a leaderless UK in the middle of the Brexit process, or even worse, a Prime Minister resident Boris, are right to unnerve sterling traders.”

In recent weeks, EU chief mediator Michel Barnier and Brussels chief Jean-Claude Juncker have weighted Brexit talks have been progressing too slowly.

And a new leader could support hold up a deal.

Bank of England deputy governor Sam Woods this week notified a transition deal with the EU needs to be in place before Christmas to ban an exodus of City jobs.

David Madden, market analyst at CMC Customer bases UK, said: “GBP/USD is lower on the session as traders were questioning how long Theresa May determination be in the top job.

“Downing Street declared that resignation is not an issue for Mrs May.

“The fact the sway had to make that statement says a lot.”

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