Teresa May is likely to be waiting for resignation, and the British pound is falling

So, a member of the conservative party and former military Johnny Mercer called on parliamentarians to deprive the prime minister of the position, condemning Teresa May’s “cautious management approach”. According to Mercer, as early as this week, Teresa May may face a vote of no confidence, since “all the wings of the party” have united against her. On October 21, The Sunday Times reported that the Tories gave the British Prime Minister three days to save their position.
Former Mayor Boris Johnson, who has already proposed his Brexit plan, also poses a threat to May’s political career. Laborites had previously stated that no May plan to exit the EU would be supported.
Parliamentarians of Ireland itself add fuel to the fire. For example, the Democratic Unionist Party of Northern Ireland intends to consider the previously proposed amendment to the bill on leaving the UK from the EU, which essentially makes it illegal for the EU proposal to solve the problem with the border of Ireland, in fact, this is support for the “hard” version of Brexit.
Supporters of this path in Britain are also quite a few. And they also held their march in the city of Harrogate last weekend, organized by the group “Leave Me To Leave,” led by former leader of the United Kingdom Independence Party Nigel Farage.
All these political upheavals were not slow to affect the national currency rate. Thus, the pound against the dollar has already fallen below 1.3. On Monday, the pound sterling fell 0.7% to $ 1.2982 against $ 1.3076 a day earlier.
Teresa May is likely to be waiting for resignation, and the British pound is falling
and as the infopowers are fed up, as the protest sentiments of UK citizens grow, the pound will weaken at least to the level of 1.27 against the dollar, said analyst Alar Broker Alexei Antonov.
Immediately after May’s resignation, investors will be negatively disposed, but then, as the party manages to show that it can defend the interests of citizens in negotiations with the EU, the attractiveness of the pound and British assets may increase, he notes.
The critical scenario, which provides for the absence of a transaction, is not currently taken into account by the market, Sabitov said.
If we talk about such a scenario, then the potential for a currency to fall can be estimated at a minimum of 6-8% to a level of 1.20-1.21 dollars per pound,
he believes.
In a soft exit scenario, currency growth is possible, and the faster this happens, the better for the pound. If it were not for the uncertainty regarding Brexit, the Bank of England could raise the rate already at the next meeting in November, as labor market data show unemployment at the level of 4% and wage growth of 3.1%. Rising wages create inflationary risks, but so far Brexit’s risks outweigh, the expert adds.