British Pound Reverses Amid Brexit Concerns. Concerns over how the United Kingdom will formally go through the Brexit process that voters approved two years earlier have risen as Theresa May’s government continues to go in turmoil. Three of her ministers have resigned from their positions recently with the most noteworthy resignation being from foreign secretary Boris Johnson.
This has led May to where she might face a vote of no confidence in the Brexit move. She has been hoping for an easier transition out of the European Union instead of being too hard and getting out of it all the way immediately. This came in spite of worries surrounding the decline of the economy in the country over the uncertainty surrounding the Brexit move and the efforts involved.
The Brexit concern has led to a drop in the value of the British pound. The decline has pushed the GBP/USD pair down to 1.325. This marks a recent low for the currency, especially as there are issues surrounding the American economy following trade concerns with China.
The pair had been valued at around 1.330 in recent time and had even risen to 1.335 for a period of time earlier in the weekend. But the recent worries about Brexit and Johnson’s resignation have led to the significant drop in the currency’s once strong value.
The total had gotten down to around 1.320 during the afternoon trading session on Monday. The currency moved up to 1.325 to become a little more controlled in its value.
The GBP/EUR pair also experienced a drop following the move. The pair had been trading at 1.134 for a good period of the weekend. The currency had been around 1.130 for nearly a week prior to that. But after Johnson’s resignation and other concerns, the pair dropped further in value. The pair quickly fell to 1.124 in value. It had gotten back up to 1.128 after a period of decline, but even then the recovery from that drop has been limited.
The British pound has been declining in value throughout the past month. The GBP/EUR total was listed at 1.145 during the earlier part of June. The total is still better than the 1.08 that the pair had last August as the currency was recovering from a massive decline in its value.
The general long term trends for the British pound have been impossible to figure out in recent time. While the pound had experienced a sizeable rise in value in 2014 and 2015, that total has declined in recent years. The currency saw a sharp decline in the middle part of 2017, but the pound has since been developing well without any striking drops. The recent Brexit-related decline is the most significant decline to have occurred in the past few months.
The potential for the British pound to drop in value could be significant depending on what happens next with the Brexit move. The uncertainty over how Brexit will work and the difficult relationship between the United Kingdom and the EU could impact how the currency is valued versus others. This comes as the value is not growing in value.
