Sterling has spent the last week struggling thanks to increasing calls for the Prime Minister’s resignation. Cabinet ministers have told the BBC that Prime Minister Theresa May is expected to announce the date of her departure this morning. It is expected that Mrs May will give a timetable for her departure as she is due to meet the chairman of the 1922 Committee. It has been reported that she will meet with the Chairman of the 1922 Committee, Sir Graham Brady, at 09.00 BST before giving a statement about her future.
Mrs May had planned for her Withdrawal Agreement to be published today, however growing opposition to the Bill caused the government to abandon this.
The resignation of Leader of the House Andrea Leadsom sparked a fresh wave of Brexit pessimism earlier in the week, with Mrs Leadsom becoming the 36th minister to resign under Theresa May.
However, pound euro losses were limited on Thursday as the euro was dented by a slew of disappointing data from the eurozone.
The eurozone’s flash composite PMI revealed that the pace of growth remained subdued and optimism about the future slipped to a four-and-a-half year low.
Chris Williamson, Chief Business Economist at IHS Markit, said: “Germany is on course for a 0.2 per cent expansion of GDP in the second quarter while the survey for data France point to a meagre 0.1 per cent gain.
“However, the bigger concern is for the rest of the region, which collectively saw growth falter amid the first fall in orders for almost six years.”
This morning’s UK retail sales data is unlikely to have much of an impact on Sterling with political dramas in focus.
We could see a flurry of pound exchange rate movement before the weekend If we do get an announcement about Mrs May’s departure this morning.