Pound drops after May's Brexit deal proposal
The British pound had already surrendered the gains from Tuesday afternoon and slipped further on Wednesday morning as it was becoming apparent that Prime Minister Theresa May's new Brexit deal proposal does not have what it takes to win over more MPs. A report said that as many as 21 Tory MPs are now expected to stop supporting May's deal following her speech from yesterday, with backbenchers on the 1922 Committee starting a new bid to change party rules and force a new confidence vote in the prime minister.
A Labour Party spokesman said this morning that May should cancel the vote on her Brexit deal, set for early June.
The pound was 0.33% lower compared to the dollar at 9:20 am CET, selling for $1.26633, its lowest point since January 4. It posted losses against other major currencies as well, sliding 0.25% against the euro at 9:22 am CET and buying €1.13535, as it dropped 0.40% to the yen, at ¥139.80250 at 9:23 am CET.
The sterling was also down 0.31% compared to the Canadian dollar at 9:24 am CET, changing hands for 1.69800. Against the Swiss franc, the UK currency fell 0.33% to go for 1.28041 at 9:26 am CET.