The pound fell on early Monday as troubles grew for British Prime Minister, May, with the news that 40 Conservative Members of the Parliament were preparing a leadership challenge, meanwhile, Brexit talks will have to deal with a crucial deadline.
According to Sunday Times report over the weekend, 40 members of parliament from British May’s Conservative Party have decided to sign a letter of no confidence. Only eight more votes are needed in order to initiate a party leadership contest, the procedure that could force May out from office to be replaced by another Conservative.
On top of this news, Brexit minister David Davis stated on Sunday, that Britain wouldn’t offer a figure for how much Britain believed it owed the EU, accentuating the lack of progress and tormenting the divorce negotiations.
The dollar gained a lift versus its major peers as U.S. yields increased and as the pound plummeted. Investor’s attention was still on the planned U.S. tax overhaul.
Sterling fell 0.55 percent closing at $1.3120 GBP=D3, pulling back from an eight day highs of $1.3229 on Friday on better than expected data on British industry.
Asian shares took a step back in a careful trade on Monday as investors were waiting to see whether U.S. Republicans could hammer a tax reform deal as soon as possible.
Nikkei .N225, Tokyo’s benchmark, dropped 0.7 percent, pulling down MSCI’s Asia-Pacific Index .MIAP0000PUS 0.4 percent. Mainland China shares .CSI climbing 0.6 percent to two year highs.The S&P 500 index broke an eight week winning streak by Friday’s close on Wall Street as investors took profits following the news that U.S. Republicans revealed a new tax plan that was different from the House of Representatives’ version.