Theresa May’s miserable Monday has had serious ramifications for the pound, which suffered a pretty sour start to the week.
With threats from Michel Barnier about the progress of negotiations, the possibility of a Brexit Bill defeat later in the week, an authority-undermining leaked letter from Michael Gove and Boorish Johnson and reports that 40 Tory MPs have agreed to sign a letter of no confidence in the PM, Theresa May is having a hell of a – and hellish – Monday (and that’s not to mention the recent departures of Priti Patel and Michael Fallon).
It’s the kind of chaos arguably not seen since the immediate aftermath of the general election, and has sent the pound into a fit of panic. Against the dollar, sterling is down 0.8% and finds itself back below $1.31, while against the euro, the currency has fallen 0.7%, and now sits under €1.125. The level of uncertainty also seems to be preventing the FTSE from revelling in the pound’s decline like it normally would, with the UK index up at most 0.1%.
Elsewhere the eurozone indices weren’t best pleased at the euro’s gains against sterling. The DAX plunged half a percent, sending it to a fresh 18 day low, while the CAC and IBEX are down 0.4% and 0.3% respectively.
As for the US open, the Dow Jones is set to dip nearly 50 points after the bell as investors continue to focus on the long and difficult journey Trump’s tax plan has to go on if it is to avoid becoming another one of the President’s numerous failures.
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