Pound Investors Fear Currency Slide If May Leadership Challenged

PM May gathering ministers divided over Brexit strategy
Pound could reach $1.34 on Brexit fix, $1.25 on May ouster

ING Bank’s Viraj Patel says the pound could see a "big relief rally" if May’s finds agreement for a soft Brexit.(Source: Bloomberg)

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By Charlotte Ryan

July 6, 2018 at 4:00 AM UTC

Updated on

July 6, 2018 at 8:33 AM UTC

This article is for subscribers only.

It’s not just Theresa May who’s worried about being toppled.

Pound investors say the threat of Conservative party turmoil is one more reason to avoid the U.K. currency. Amid reports that the British Prime Minister faces ministerial resignations if she fails to achieve a solution to a Brexit deadlock, strategists warn sterling could fall as low as $1.25 if she is ousted in a leadership challenge.