Sterling is in a free fall after election decreased Conservatives percentage lead over Labours and U.K. PM Theresa May takes full responsibility. Loonie outperformed as Bank of Canada may assess whether less stimulus is needed after 7 years. Meanwhile, greenback awaits Fed rate decision and economic projections tomorrow.
British Pound Sank as May Apologises for Election Results
British pound slumped against all its major counterparties on Monday, on the back of political troubles as U.K. Prime Minster Theresa May didn’t manage to win the majority of the parliament in the snap election she called. Thirty-two parliament members of her party lost their positions and May took full responsibility for election’s result. According to two lawmakers who were present at the meeting, she stated that “I’m the person who got us into this mess and I’m the one who will get us out of it”. Before the snap election, Conservatives were leading by 20% over the opposite Labour Party and May believed that with increased majority will have a stronger hand in Brexit negotiations, calling for a snap election. Though, after terror attacks during the pre-election campaigns, Conservatives are leading only by 2.4% over the Labours. Theresa also told to Tallies “I’ll serve you as long as you want me” which means that she may leave earlier than expected. Moreover, Queen’s decision to delay her speech to Parliament raise concerns that may be more leadership changes which will weigh on the currency.
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