Sterling has been pummelled this week as a disastrous speech by Prime Minister May raised fears of further disruption in UK politics.

The weak performance by Theresa May at the conservative conference has further cemented in the view that she is unfit to lead the UK.

It was revealed on Friday Conservative MP Grant Shapps was rounding up signatures from conservative MP who wish her to leave.

Early on Friday, it was reported Schapps had 30 signatures of the 48 required to trigger a leadership vote.

Theresa May brushed off the news, however, saying she had the full support of her cabinet.

The leadership debate – or even a general election – would come just as the UK enters critical stages of Brexit negotiations.

Dollar Strength

The weakness in Sterling has been enhanced by a stronger dollar helped higher by expectations of a rate hike this year and a technical rebound after a month of steady declines.

The first reduction in US job failed to halt the dollar’s rally on Friday as investors look through the figures to a potential rebound in the labour market following storms across Texas and Florida.

On Friday afternoon, GBP/USD traded below 1.3030, the lowest since early September and down over 600 points from recent highs.

For investors new to trading forex, Learn to Trade offers comprehensive courses covering a wide range of trading strategies. You can register for more information here.

Leave a Reply