The Pound exchange rate has begun Friday’s session recouping some losses across the board. The Pound Euro (GBP/EUR) and Pound US Dollar (GBP/USD) currency pairs are trading in the region of 1.12 and 1.28 respectively.
Theresa May held a press conference just after 5pm on Thursday following a host of resignations throughout the day. Seven people including several ministers resigned in the wake of Wednesday’s Cabinet meeting which saw Theresa May’s Brexit deal on the table. Brexit Secretary Dominic Raab resigned while Jacob Rees-Mogg submitted a letter calling for a vote of no confidence in May. 48 MPs would need to write to the 1922 Committee Chair to enact a vote of no confidence.
Press Conference Does Little for Sterling Exchange Rate (GBP)
Theresa May has been trying to gain the support of the Cabinet for her plan as the March Brexit day approaches. Two Brexit Secretaries have now left the role during May’s pursuit to take Britain out of the EU, and today May has been left once again in a precarious position.
Sterling slipped by almost 2.0% versus the US Dollar and Euro during Thursday’s trading as the resignations hit markets and the UK’s political future was rocked once again. The GBP/EUR exchange rate noted its most significant one-day drop in over two years.
During the press conference, Theresa May stood firm, saying that she believed her course of action was in the best interests of the country, while suggesting her Brexit deal would deliver the priorities of the British people. May also suggested supply chains would be protected, along with manufacturing jobs, while ending free movement. May said: ‘This deal delivers what people voted for, and is in the national interest.’
GBP/EUR, GBP/USD Exchange Rate Forecast
It’s a quiet day for UK economic data, leaving a lot of the Pound’s fate down to Brexit and internal UK politics. Meanwhile, the European Central Bank (ECB) President Mario Draghi will speak in Frankfurt during today’s session. The final October Eurozone Consumer Price Index (CPI) numbers will also be released. In the US, Industrial Production and Manufacturing Production figures will reach markets.
The Pound to Euro (GBP/EUR) exchange rate is trending in the region of 1.1310 . The Pound to US Dollar (GBP/USD) exchange rate is trading at levels of 1.2814.