Article / 13 November 2017 at 12:38 GMT

Mid-session Europe: Sterling sold as May's troubles mount

Saxo Markets
  • GBP sold across the board on reports that May could face no-confidence vote
  • GBPUSD lost about 1%
  • EUR slips in sympathy wth GBP
  • European shares decline, though healthcare and consumer goods stocks cling to gains

Sterling and Brexit
 PM Theresa May's fragility and the prospect of a hard Brexit are 
hurting sterling. TF Montage / Shutterstock

By the Global Sales Trading Team

  • European shares fall though healthcare and consumer goods stocks are clinging to positive territory.
  • GBP remains offered across the board as markets digest the letter of no confidence towards prime minister Theresa May reported to be in preparation by a number of conservative MPs.

  • GBPUSD dropped about 1% to 1.3064 as May faces a widening revolt within her own party with 40 Conservative MPs expected to sign a letter of no confidence. A leadership contest would further complicate already difficult Brexit negotiations.

  • The euro was also marginally lower at $1.1638 in sympathy with GBP.

  • European bonds rallied, supported by gilts and Belgian debt in particular, which benefited from having next week’s new auctions cancelled .

  • Gold prices slowly recover from Friday’s fire sale as falling yields and a stronger yen provide support .

Please click on the attached PDF for the Saxo Bank Global Sales Trading team's overview of the mid-session movements seen in forex, equity, FX option, commodity, and bond markets.

Mid-session Europe: November 13, 2017
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Mid-session Europe: November 13, 2017


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