Brexit chaos continues dragging pound down

The British pound has been a big loser recently, which is hardly a surprise to anyone. The British Prime Minister Theresa May is still struggling to get her Brexit deal through the parliament, while the opposition increasingly calls for her to resign. The degree of political and economic uncertainty skyrocketing, making it virtually impossible for the corporates to plan for the future or even do business. The pound has been spiraling down for ten consecutive days and touched $1.2624, the lowest level of the year, on Wednesday. Despite a recovery from the recent lows, GBP/USD is still down 0.1% since Asia opening, changing hands at $1.2650. Against euro, sterling also lost 0.1% and dipped to 0.8816 euro per pound. The pound is likely to stay a bear’s case as there is little evidence that the political deadlock in Britain will be resolved any time soon. May’s new version of the deal faces fierce criticism from both parties, and it increasingly looks like the parliament will rebuff anything that comes from May. Scottish National party’s Westminster leader Ian Blackford openly says that May’s time is up, while the leader of the Labour party Jeremy Corbyn indicates his party would oppose the plan, despite the possibility of a new referendum if the parliament back the bill. Moreover, it seems that Mrs. May is ready to yield to the MPs pressure and resign. She will announce that she is leaving her post as soon as tomorrow, on May 24, after a meeting with Sir Graham Brady, chairman of the 1922 Committee, the Times reports citing her allies.

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