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Friday: courteous day of Theresa May and the British pound

Friday: courteous day of Theresa May and the British pound

created Michał Sielski23 May 2019

Not only black clouds, but also political lightning bolts gather over British Prime Minister Theresa May. Even supporters of MPs are against the new text of the law on the exit of the British from the European Union. Even MPs from her party can present a vote of no confidence on Friday. The pound's reaction remains unchanged - the currency continues to weaken, but speculative movements are strengthening.

The new law on the exit of Great Britain from the European Union was to be submitted to the vote in the first week of June. The House of Commons, however, will not take care of it at this time. Why? The text of the government agreement was not accepted even by the political community of Theresa May. It only emphasizes how broken the Conservative Party is, which is struggling with the internal opposition.

"Theresa May Must Go"

The current position of the British prime minister is somewhat reminiscent of the slogan "Balcerowicz must go" repeated ad nauseam by former Deputy Prime Minister Andrzej Lepper. The difference is that the departure of Theresa May is not demanded by her political opponents, but also by her colleagues from behind the party table. The Tories do not hide that a new leader is needed who could redirect the talks with the European Union on Brexit to new directions. The media has already given specific names of possible successors. The new face of British politics could be former foreign minister Boris Johnson, foreign minister Jeremy Hunt, or former Brexit minister Dominic Raab.

On Wednesday, once again, we had the opportunity to observe the direct undermining of Theresa May's competences and the pressure to immediately resign.

- The new draft law on Brexit contains unacceptable concessions. This clearly indicates that the party's image must be refreshed as soon as possible. And you know what it entails - underlines the head of the foreign affairs committee, Tom Tugendhat.

On Friday, the party is to decide if Theresa May will receive a vote of no confidence from his own deputies. Then it will be known how much the Tories lost to the European Parliament elections on Thursday because, as to the fact that they will lose, there has been no illusion for a long time, presenting pre-election polls in recent weeks.

She tried to reconcile, it came out as usual

10 concessions, which the prime minister proposed in the new brexit act, would be a tribute to the opposition and show both the Conservative Party and the Labor Party that the head of the government draws conclusions from previous failures (the bill was to be voted three times) and wants to reach a compromise. Instead of this and controlled abandonment of the EU, however, we have another political quarrel. Even those MPs who supported previous proposals, this time they opposed. The Labor Party, the Scottish National Party and the Liberal Democrats are already against it.

Agreements are also opposed by the brightest points of British politics. The head of the parliamentary party of the Conservative Party and the leader of the House of Commons, Andrea Leadsom, resigned from office.

- I have no illusions that such action will lead to the implementation of the referendum result She explained. - I also fundamentally disagree with Brexit - he adds.

In politics nervously, in quotes too

Although in recent weeks the pound has become resistant to political turmoil in the British parliament and constant changes in the Brexit situation, it looks like investors' patience is on the verge of exhaustion. This is evidenced by the nervous movements that took place even at the beginning of Theresa May's speech on the Brexit Act.


Chart GBP / USD, M30. Source: XTB xStation

This is perfectly visible even on the 30-minute chart. The dynamic depression shows that there is no shortage of those who believe that the pound rate will turn back from the southern direction, which has been stubbornly held for almost two weeks. However, disappointment comes as quickly, which means that the pound price is still falling under its own weight.

You can see that the dynamics of the movement slowly slows down. Each investor must, however, answer the question himself whether it is a turning point or technical support for steam GBPUSD, which is located near 1.246, we will arrive anyway in the coming days. We have 10 inheritance in a row behind us, so the trend is not difficult to define.

gbpusd brexit

Chart GBP / USD, D1. Source: XTB xStation

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About the Author
Michał Sielski
Professional journalist for over 20 years. He worked, among others, in Gazeta Wyborcza, recently associated with the largest regional portal - He has been present on the financial market for 18 years, he started on the Warsaw Stock Exchange when the shares of PKN Orlen and TP SA were just being introduced to the market. Recently, his investment focus has been exclusively on the Forex market. Privately, he is a parachutist, a lover of Polish mountains and a Polish karate champion.

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