LONDON — The pound is falling against the dollar and the euro on Thursday, amid speculation that Theresa May could be ousted at British Prime Minister.
Kathleen Brooks, research director at City Index, says in an email on Thursday: “The market seems to be ignoring some fairly solid economic data, progress, albeit slow, in the Brexit talks, and a weaker dollar and euro in favour of politics.
“After Theresa May’s speech at the Tory party conference on Wednesday, there are rumours that she will be asked (forced) to step down by her own party. The prospect of a leaderless UK in the middle of the Brexit process, or even worse, a Prime Minister Boris, are right to unnerve sterling traders.”
David Madden, an analyst at CMC Markets, says: “Downing Street declared that resignation is not an issue for Mrs May. The fact the government had to make that statement says a lot.”