FxWirePro: Pound declines as trouble brew within Conservative Party

The pound is down more than 100 pips on Monday over the recent political trouble in the UK, within the ruling Conservative party. A weekend report published in the Sunday Times has suggested that as many as 40 members of the Parliament are ready to sign a letter of no-confidence in UK’s Prime Minister Theresa May. If the report turns trade, this will be the second such attempt to oust Prime Minister Theresa May since September.

Grant Shapps, the former Conservative chairman, had emerged as a leader of the plot to oust Theresa May in September, who has claimed at the time that the party members are well within their rights to call for the Prime Minister to quit. According to him up to 30 Conservative Party members were ready to support the move to oust her. However, Mr. Shapps attempt to gather signatures to trigger a Conservative leadership election failed miserably at that time. The Sunday Times report suggests that defectors within the party have increased their strength since September.

The pound opened lower today at 1.316 against the USD compared to Friday’s close at 1.319 and has declined further since. It is currently trading at 1.309 against the USD.