Pound was up 0.4% against the euro after PM May resignation, after 14 days of losses, but gains seen short-lived.
Prime Minister Theresa May set out a departure date after two years of trying to push through a Brexit divorce deal. Theresa May stepped into 10 Downing Street in July 2016 with the express aim of taking Britain out of the European Union.
Well, I tried.
That’s what UK Prime Minister Theresa May said this morning as she announced her resignation, fighting back tears. May said she would quit as leader of the Conservative Party on Friday June 7. May had to step down after she repeatedly failed to deliver on her signature policy — shepherding Britain’s exit from the European Union. She will depart as prime minister this summer having failed in that ambition. May will remain in charge as the Conservatives elect a new leader.
Trading was volatile as concerns rose that she is likely to be succeeded by a Eurosceptic leader. This potentially increased the chances of a ‘no-deal’ Brexit. There is no clarity on who her successor will be. Markets are concerned that a tougher stance with the EU might prompt investors to turn more negative on the outlook for the pound in the coming months.
Versus the euro, the pound was a third of a percent stronger at 88.05 pence after 14 consecutive days of losses. Traders trimmed back some of their negative bets on the pound before a long weekend.
Britain’s markets are shut on Monday for a holiday.
START TRADINGForex – PM May resignation temporarily supports pound
The dollar edged away from two-year highs on Friday. Weak U.S. manufacturing activity data sparked worries that the trade conflict with China may hurt the world’s largest economy and affect the currency’s safe-haven status. Against a basket of six major currencies, the dollar was down 0.2% at 97.686 at one stage. The greenback was 0.7% off a two-year high of 98.371 hit the previous session.
The dollar weakness helped euro briefly inch above $1.12 to hit a one-week high. The common currency might have also been helped by the Dutch part of the EU parliamentary elections. The euro has been pinned lower in recent weeks by the prospect of Eurosceptic parties across the continent performing well in the elections.
Against the yen, the dollar edged down to 109.675 yen, extending losses overnight. It gave up two-thirds of a percent, its steepest drop in a single session in two months.
Oil rose towards $69 a barrel on Friday after two sessions of losses. However, it remained on track for its biggest weekly drop this year due to rising inventories and concerns about an economic slowdown. U.S. crude added 75 cents at $58.66. Brent crude futures rose 98 cents to $68.74 a barrel but remained on course for a decline of nearly 5% this week..
Gold prices held steady on Friday after rising above $1,280 in the previous session. Spot gold was steady at $1,283.21. The metal has risen 0.5% so far this week.
PLEASE NOTE The information above is not investment advice.
Sources: Reuters, Investing, CNN money