The pound came under massive selling pressure yesterday as, in the absence of any major UK developments in the economic agenda, investors turned their gaze back to politics. Today, Aussie traders will be sitting on the edge of their seats in anticipation of Australia’s CPI data, due out overnight.
GBP Slides as Focus Turns Back to UK Politics
The pound traded lower against all but one of the other G10 currencies on Monday. It traded virtually unchanged only against NOK, while the main gainers were JPY, USD and CAD in that order.
With no major economic releases on the agenda to drive the pound, investors may have turned their attention back to UK politics. Yesterday, the House of Lords Constitution Committee said that May’s withdrawal bill is “fundamentally flawed” and needs to be rewritten. This followed reports at the end of last week that PM May is again under pressure from rebel members within her own party, who want her to deliver a quick and clean break from the EU. Also, several media reports suggest that there is an increasing number of Tories demanding a confidence vote on May’s leadership.
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