Brexit Talks Around The Corner, Sterling Extends Downward Rally Amidst Rising Political Turmoil
British Pound slumped against all of its peers on Monday, extending its losses on Friday further as the currency was weighed down by concerns over the next leader of the country.
The pair GBPUSD lost more than 0.5 percent to trade around $1.2681, heading towards the lowest level since April 18th reached last Friday. Sterling lost ground amidst political turmoil for U.K. Prime Minister Theresa May. The PM left her Conservative Party without control of the House of Commons after Thursday’s snap election as it failed to win the minimum 326 seats needed to hold a parliamentary majority.
A hung parliament left investors cautious about the U.K.’s path on Brexit negotiations as the talks are scheduled to begin in a week. According to latest reports, May is seeking a coalition with Northern Ireland’s Democratic Unionist Party, which holds 10 seats, to form a new government. However, no agreement has been struck yet.
The prime minister herself is facing calls to step down from her post as she could not strengthen her party’s hand by calling the snap election mid-April. PM May is scheduled to have a meeting with lawmakers on Monday.
Sell Stop at 1.26700, Take profit at 1.26300, Stop loss at 1.26900