Another factor that's weighing on the pound today
Is this the end of the road for Theresa May? She's set to address lawmakers from her own party later today (no scheduled time that I can find so far) in a private meeting at parliament and she'll likely come under scrutiny and questioning on her Brexit strategy when the time comes.
The party is already somewhat divided with some members already discussing forcing a leadership contest to topple May as talks continue to stall in Brexit negotiations with the European Union.
Media sources have so far reported that there is already 46 letters submitted to demand a vote of no-confidence against Theresa May with 48 being required. Today's meeting could tip the scale over and push forward such a challenge and that's one risk that pound traders may look forward to in the session ahead.
No doubt initial reports will see the pound dip in the event a leadership challenge is evoked, but in truth there isn't a strong chance of Theresa May losing it as there is no better suited candidate to unseat her at this point.
Either way, expect the continued domestic political pressures and uncertainty to keep weighing on the pound as long as this saga continues and with no clear signs emerging from the UK to resolve the Irish backstop/border in talks with the EU still, it's hard to imagine the pound staging a rally at this point in time.
There's no denying that a lot of uncertainty and Brexit negativity has been priced in currently and the pound will rally strongly once those events fade, but now is still not the time for that just yet.
