Friendless and running out of time, the heightened speculation that Theresa May might be moving out of No. 10 very soon cranked up the pressure on an already exhausted pound.
Things are so bad for the Prime Minister that some are suggesting she will be gone by the end of the week, the party mobilising to find a way to get her out, by hook or by crook. Her Cabinet is reportedly incensed at what is actually contained within the Withdrawal Agreement Bill, with claims that it goes far beyond what was agreed in the room.
GB/USD, EUR/GBP 4 Month Lows
The growing sense that May’s Premiership isn’t long for this world – setting up a Tory leadership battle that could well put a hardline Brexiter in power, especially if the party does as badly in the European elections as expected – was ruinous for sterling. Against the dollar and euro the pound sank half a percent, striking fresh 4-month-plus lows against both.
This was a great help to the FTSE. The day’s rebound had waned after the US open, with the Dow Jones dipping by 50 points, a move that sent the DAX and CAC from green to red. However, the UK index managed to cling onto a 20 point climb; half of what it saw at lunchtime, but nevertheless better than its peers.