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British Pound: Brexit fears are back and the pound pays the price



The pound sterling fell 0.65% against the US dollar on Wednesday to just over $ 1.26 before recovering slightly. The currency has lost about 2.8% this month and, according to analysts, is at a record 13-week low against the euro.

The case comes when Britain once again has the prospect of a chaotic exit from Europe Union.

Prime Minister Theresa May announced on Tuesday details of her final bid for a Brexit deal by the British Parliament. Their new pitch, intended as a compromise, would allow MPs to vote on holding a second referendum when they first supported their deal.

The plan, however, met with resistance from across the political spectrum and seems to be dead on arrival.

Now the pressure is growing that May withdraws. The conservative party leaders met on Wednesday to discuss the change in party rules, a move that could have opened the door for their downfall.

Ultimately, they did not change the rules that protected them from a leadership challenge, a Conservative MP familiar with the meeting told CNN. But Graham Brady, the group's chairman, named the 1

922 Committee, will meet with the Prime Minister on Friday to discuss their future, the source said. The source asked not to be named if internal party negotiations were discussed.

  Brexit accused British Steel collapses and threatens around 25,000 jobs

The Confusion encourages investors to shed pounds without any signs of recovery soon.

Britain will leave the European Union on 31 October after Brexit was twice delayed. EU officials have already announced that they will not renegotiate the agreement they agreed with at the beginning of this year.

If the UK legislature continues to refuse to ratify the May Agreement, the country may have to leave the bloc without taking measures to protect trade – a result that the government itself warned would be British Business deeply hurt.

Deutsche Bank analyst Oliver Harvey said the bank expects May to be replaced by a pro-hard party chairman of the Brexit Conservative Party this summer. This in turn increases the risk of a no-deal Brexit until the end of October.

Jameel Ahmad, global head of currency strategy at FXTM, said in a statement Wednesday that he expects the pound to fall to 1.25 USD ] as May's vulnerability dominates the headlines.

– Luke McGee of CNN contributed to this report


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