Pound LIVE: GBP Sterling tumbles against euro after brief bounce on Theresa May update

Sterling made a brief surge yesterday afternoon after the 1922 Committee voted to change party rules which protect the Prime Minister from a no confidence vote until December by nine votes to seven.

Analysts suggest the UK currency took comfort in further political upheaval being pushed back.

But the pound was back down this morning and was trading at €1.1563 at 9.26am UK time.

Against the US dollar, Sterling is worth $1.2894 as it slips further from the $1.30-mark.

Currency watch website Pound Sterling Live said: “While the euro and dollar are dominant on Thursday we did see a bounce in the broader Sterling complex in mid-week trade after it was made clear an attempt to topple Prime Minister Theresa May had failed.

“The move by the pound reminds us that political headlines remain a key risk to the currency in the short-term.”

The pound also took advantage of euro weakness yesterday after weak data from the eurozone was released.

Data from the Ifo economic institute showed business morale in Germany fell to 99.2 in April, down from expectations of a rise to 99.9.

With Brexit remaining the key mover for Sterling, updates on Britain leaving the European Union or changes in UK politics are likely to keep the pound fluctuating. 

Despite surviving the imminent threat to her leadership, Mrs May remains under pressure to name the date of her departure.

The 1922 Committee, chaired by Sir Graham Brady, yesterday demanded “clarity” over what she will do if her EU withdrawal deal fails.

Sir Graham made clear he remained ready to convey MPs’ concerns about her leadership to Mrs May.

And he asked the Prime Minister to set out a “timetable and schedule” for her departure in the case that her Withdrawal Agreement fails to secure parliamentary approval.

Meanwhile, Zoopla house price data revealed today showed sales of homes across cities in southern England have plunged by 13 percent on average since 2015.

On average, sales increased by 6 percent across cities in northern England over the three years.

Sales in London and Cambridge are down 20 percent on 2015 levels.

By contrast, transactions in Liverpool have increased by 19 percent over the same period and those in Newcastle have increased by 5 percent.

Zoopla said affordability pressures and higher stamp duty costs have particularly affected the South, with Brexit uncertainty also being a compounding factor.

The figures looked at the UK’s 20 biggest cities.

source: express.co.uk