Investors' concerns over the pace of the Brexit negotiations once again weighed on the Pound Sterling and sent it broadly lower. Against the USD, Sterling approached last week's 2-week trough. What happened in the overnight hours in London was news that a vocal supporter of Theresa May's efforts made the comment that the Prime Minister should be looking for a “better deal.” Long a supporter of the Prime Minister's government, the Northern Irish Democratic Unionist Party is now appearing to oppose Ms. May's efforts, joining a growing group from within her own Conservative party.
As reported at 11:39 am (GMT) in London, the GBP/USD was trading at $1.29, down 0.07%, moving away from the recently struck 2-week low of $1.2832. The EUR/GBP was trading at 0.8894 Pence, down 0.08%; the pair has ranged from 0.88751 Pence to 0.89225 Pence in today's session. The GBP/JPY was trading at 144.599 Yen, down 0.09%.
Carney Confident of Brokered Brexit Deal
Earlier today, the head of the Bank of England spoke to the Treasury Select Committee on the prospect of a “no Brexit” deal. According to Mark Carney, the worst case scenario has already been one that the BoE is preparing itself for, though the believes that Ms. May will be able to secure an agreement. Carney said he is fearful of the situation that could occur in the event of a hard Brexit, suggesting that there might be more than just economic consequences. Another member of the Bank of England who also spoke said that while he believed that, even under the worst case scenario the situation would not be as bad as the 2008 financial crisis.