Pound Declines Amid UK Political Instability
The British pound continues to trade as the weakest major currency amidst political instability in the UK. The Japanese yen and the Swiss franc are trading higher against the background of risk aversion in the markets.
40 MPs from the Conservative Party of British Prime Minister Theresa May agreed to sign a letter of no confidence in her. This is eight people less than necessary to initiate a struggle for leadership of the party, because of which May could be forced to leave her post.
The chief economist of the Bank of England Andy Haldane said that the price increase across the economy is now much higher than the inflation target of 2%. According to the economist, inflation will remain above the target over the next few years.