The lack of support for PM May has continued to amplify sterling's frailties this week as figureheads both from within and outside the Conservative Party voiced their clear opposition to the Prime Minister's stance ahead of what is meant to be the last chance saloon on her divorce bill at the start of next month.

Currency Pair% Change (Month)Difference on £200,000
GBPEUR2.53%€5,800
GBPUSD2.65%$6,800
GBPCAD2.61%CAD$9,000

Another defeat in 2 weeks’ time could well be the last we see of PM May's divorce bill and some are even suggesting the last of her premiership altogether.

If sterling was ever going to maintain any kind of drive past the 1.17 mark against the euro this month, signs of cross-party breakthrough's or at least hints of shifts in support for the withdrawal agreement bill would have been vital. The markets needed something tangible to believe PM May might have a chance of bridging the 48 vote gap her divorce bill failed by last time.

However, the opposite appears to have happened. The gradual disintegration of talks with Labour this month has clearly taken it's toll on the pound. Ever since Corbyn publicly lamented the lack of change in May's proposal, the pound has managed to slip to near 11 week lows against the euro, highlighting just how little the markets believe in May's proposal.

Further losses for foreign currency buyers?

Further losses for foreign currency buyers?

Comments from both the Democratic Unionist Party (DUP) Leader Nigel Dodds and the Conservatives' keen Brexiteer Peter Bone yesterday may intensify the losses further.

Both have suggested the gap in votes may even be wider this time as a result of the frustration within the PM's camp, which doesn't bode well for sterling exchange rates moving forward. 

May has been called to meet with the executive backbench 1922 committee to discuss her future and potentially decide on a departure date. Those with a foreign currency requirement might want to get in touch with their account manager to find out how they can limit their exposure. 

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