GBP weakened on Wednesday on signs that talks between Britain’s government and the main opposition Labour Party to break the Brexit deadlock may soon collapse.
The pound is falling as Brexit negotiations between Britain’s Conservative government and the opposition Labour Party lumber on with little success and as concerns grow about a challenge to Prime Minister Theresa May’s leadership.
All this following late Friday afternoon rallies in GBP after shocking local election results with voters insisting on cross party Brexit agreement being passed.
But the suggestion that the talks could be pronounced dead later on Wednesday by broadcaster ITV’s political editor took sterling down another leg.
“The announcement that the UK will take part in European elections confirms that cross-party Brexit talks aren’t going anywhere fast. This also refocuses attention on a leadership challenge to May
It fell towards $1.31, down 0.6 percent on the day, and also hit a six-day low versus the euro of 1.1613 , down half a percent on the day.