Pound Stays Pressured by Brexit Worries

Forex News

The British pound weakened versus US dollar today. The currency lost 0.25% versus US dollar and reached $1.2994 level, after the BBC reported a group of about 50 lawmakers in Theresa May's government had met to discuss how and when they could force her out of her job. These lawmakers have condemned May's plans for Britain to remain in a free trade zone for goods with the EU after it leaves the bloc in March, 2019.

Still, the pound recovered shortly after that, to trade at $1.3028 level. In recent days, the pound reached a 5-week highs ($1.3087) on hopes of a speedy UK-EU Brexit deal. While recent signals from Brussels have pointed to renewed confidence that Britain and the European Union can agree a deal to govern trading relations after Brexit, divisions within May's government over Brexit continue to influence the markets.

European Commission head Jean-Claude Juncker stated today, that the EU aims to keep close trade and security ties with Britain after Brexit but said the European Union would not compromise on key withdrawal terms.