After reaching a high of $1.4346 last Friday against its US counterpart, the British pound has now slipped back to be trading at $1.4064 in today’s session which just goes to prove how vulnerable the currency is to the uncertainties still surrounding Brexit and the current leadership of the UK government.
British Prime Minister Teresa may is expected to face a leadership challenge in the nearest future after losing the backing of some government ministers on her perceived softness on Brexit as well as a failure to remove government ministers who seem to have their own agenda on the conditions of Brexit.
The latest one to speak out is Chancellor Philip Hammond who said that there should only be “modest changes” when Britain leaves the EU which left ministers immediately accusing Hammond of pushing for a soft Brexit which would leave the UK with the wrong end of the deal and put the EU in the driver’s seat during negotiations.
Some Tory ministers are urging Prime Minister May to get rid of the Chancellor for not towing the party line ,
“He needs to go, he’s not being loyal to the Prime Minister.” Said Tory MP Nadine Dorries after Mr Hammond’s comments.
If there is a leadership challenge to May, the pound may fail to hold on to its recent gains as the government can ill afford such political uncertainty at a time when the immediate future of the country’s economy is at stake
“How long has the prime minister got? I am of the view that any sort of change in leadership is not helpful at the moment and I don’t support that but I do think the window is closing because politics can be quite a brutal game’’ said Tory MP Johnny Mercer.
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