British Pound Weakens on Political Turmoil

The British pound weakened this morning during Asian trade hours. Two parliamentary leaders in the United Kingdom quit in protest of the prime minister’s Brexit policy. These resignations are raising the worries of a hard Brexit. On the other hand, the dollar was also trading near three week lows as economic data showed softer than expected wage growth.

The USD/JPY market was at 110.98 yen. This was up a bit from yesterday as it is stuck in a rage trade pattern. We have seen this range trade for the past month or so.

The AUD/USD market was up

0.15 percent. It was last trading at $0.7479. This market continues to recover from $0.7311. That low was set last Monday.

The GBP/USD market was last trading at $1.3253. It had, on Monday, hit a low of $1.3189. This weakness comes after Prime Minister Theresa May’s foreign minister and Brexit negotiator quit her government. They did so in protest. They are not happy with May’s plans to keep trade ties with the European Union.

The British Pound falls against other Forex Partners on Brexit Worries

The British pound against the euro is at a four month low. It is was, on Monday, trading at of 89.025. This market was last trading at 88.70.

The British pound paired some losses after some Conservative lawmakers said May is still safe from a leadership challenge. Even with Boris Johnson and Brexit minister David Davis resigning their posts.

Still, their resignations hurt May’s claim of cabinet unity. She made that claim on Friday. May thought after two years of negotiations secured agreement on the monarchy’s largest foreign and trading policy change in fifty years.