The pound fell sharply against the dollar and euro on Thursday as speculation mounted that Theresa May is about to resign as prime minister after her latest attempt at gaining support for an EU withdrawal agreement lay in tatters.
Sterling fell to €1.13 on Thursday morning, extending its worst run against the single currency since it started trading in 1999. Sterling has fallen for 13 consecutive days against the euro and was on track to extend that record on Thursday after another 0.4 per cent drop by mid-morning
The pound also slipped a quarter of a cent against the dollar, taking its losses over the past three weeks to 3 per cent.
Traders priced in an increased likelihood of the UK crashing out of the EU without a deal as Ms May failed to quell a ministerial mutiny over her revised deal and Commons leader Andrea Leadsom quit late on Wednesday.
Other ministers are expected to follow Ms Leadsom – the most prominent Brexiteer in the cabinet – out of the door.
1/11 Boris Johnson
Former foreign secretary Boris Johnson has long been hopeful, he previously stood in the leadership contest that followed the Brexit vote and has at many times since been thought to be maneuvering himself towards the goal. He remains a darling of the party’s right wing, particularly those in the ERG, and is the most popular choice among Tory voters but his leadership bid would be fiercely opposed by many MPs
PA
2/11 Esther McVey
The former work and pensions secretary announced that she will be standing for the leadership when May leaves. McVey is the first to explicitly state that she intends to stand. She resigned from the cabinet in protest over May’s Brexit deal
AFP/Getty
3/11 Michael Gove
Environment secretary Michael Gove is another member who has long wanted to be leader. He has lately been known for rousing his party in the commons, his recent speeches on the Brexit deal and Labour’s no confidence motion have overshadowed the Prime Minister’s. He has been loyal to the Prime Minister, partly to shed his reputation as a backstabber who abandoned Boris Johnson to stand against him in the 2016 leadership election
Getty
4/11 Dominic Raab
Former Brexit secretary Dominic Raab has emerged as a favourite to be the Brexiteer candidate in a contest to succeed to Ms May. He displayed a grip on detail in his role as Brexit secretary. When asked recently if he would like to become prime minister he replied “never say never”
Getty
5/11 Amber Rudd
Work and pensions secretary Amber Rudd is a leading contender from the moderate wing of the party. She returned to the cabinet in November 2018 after resigning as Home Secretary over the handling of the Windrush scandal. Rudd showed off her leadership credentials in the 2017 election campaign, appearing in the televised debate in place of the Prime Minister, who had refused. Her pro-EU leanings, and her tiny 346 majority in Hastings and Rye might count against her among Tory members
AFP/Getty
6/11 Sajid Javid
Home secretary Sajid Javid is said to have a plan in place for a leadership race. He made headlines over Christmas when he declared that people smuggling over the English channel was a “major incident” and more recently when he revoked the citizenship of ISIS bride Shamima Begum. Son of a bus driver, he wants the Conservatives to be seen as the party of social mobility
PA
7/11 Jeremy Hunt
Foreign secretary Jeremy Hunt was recently thought to be the favourite in the event of a leadership race as he could sell himself as the man to unite the party. Critics worry that his long stint as health secretary could return to haunt him at a general election. He has reportedly been holding meetings with Tory MPs over breakfast to promote his leadership.
PA
8/11 David Davis
Often seen as a possible caretaker prime minister if Ms May departed, but would want the job on a permanent basis. Has twice run for the Tory leadership. Enjoyed an Indian summer with a surprise return to the cabinet after the 2016 referendum. Eclipsed Mr Johnson by resigning first over the Chequers deal.
Would play hardball with Brussels. Now in a battle with Mr Johnson and Mr Raab to be the Eurosceptics’ standard-bearer. Aged 70, so his party may opt for someone younger
AFP/Getty
9/11 Andrea Leadsom
Following the Prime Minister’s second defeat over her Brexit deal, Leader of the house Andrea Leadsom hosted a dinner party at which “leadership was the only topic of conversation”, The Times heard. Leadsom ran against Theresa May in the 2016 leadership election before dropping out, allowing May to become Prime Minister
AFP/Getty
10/11 Priti Patel
Former international development secretary Priti Patel is thought to be positioning herself as a contender. One MP told The Independent “she knows she’s from the right of the party, the part which is going to choose the next leader, so she’s reminding everyone she’s there.” Patel left the government late in 2017 after it emerged that she had held undisclosed meetings with Israeli officials
PA
11/11 Liz Truss
Chief secretary to the Treasury Liz Truss has been rumoured to be a contender after a recent interview in The Times in which she proposed a number of policies. When asked about her desire to be leader, she replied “it’s never wise to rule anything out in politics but I’m absolutely not thinking about it”
PA
1/11 Boris Johnson
Former foreign secretary Boris Johnson has long been hopeful, he previously stood in the leadership contest that followed the Brexit vote and has at many times since been thought to be maneuvering himself towards the goal. He remains a darling of the party’s right wing, particularly those in the ERG, and is the most popular choice among Tory voters but his leadership bid would be fiercely opposed by many MPs
PA
2/11 Esther McVey
The former work and pensions secretary announced that she will be standing for the leadership when May leaves. McVey is the first to explicitly state that she intends to stand. She resigned from the cabinet in protest over May’s Brexit deal
AFP/Getty
3/11 Michael Gove
Environment secretary Michael Gove is another member who has long wanted to be leader. He has lately been known for rousing his party in the commons, his recent speeches on the Brexit deal and Labour’s no confidence motion have overshadowed the Prime Minister’s. He has been loyal to the Prime Minister, partly to shed his reputation as a backstabber who abandoned Boris Johnson to stand against him in the 2016 leadership election
Getty
4/11 Dominic Raab
Former Brexit secretary Dominic Raab has emerged as a favourite to be the Brexiteer candidate in a contest to succeed to Ms May. He displayed a grip on detail in his role as Brexit secretary. When asked recently if he would like to become prime minister he replied “never say never”
Getty
5/11 Amber Rudd
Work and pensions secretary Amber Rudd is a leading contender from the moderate wing of the party. She returned to the cabinet in November 2018 after resigning as Home Secretary over the handling of the Windrush scandal. Rudd showed off her leadership credentials in the 2017 election campaign, appearing in the televised debate in place of the Prime Minister, who had refused. Her pro-EU leanings, and her tiny 346 majority in Hastings and Rye might count against her among Tory members
AFP/Getty
6/11 Sajid Javid
Home secretary Sajid Javid is said to have a plan in place for a leadership race. He made headlines over Christmas when he declared that people smuggling over the English channel was a “major incident” and more recently when he revoked the citizenship of ISIS bride Shamima Begum. Son of a bus driver, he wants the Conservatives to be seen as the party of social mobility
PA
7/11 Jeremy Hunt
Foreign secretary Jeremy Hunt was recently thought to be the favourite in the event of a leadership race as he could sell himself as the man to unite the party. Critics worry that his long stint as health secretary could return to haunt him at a general election. He has reportedly been holding meetings with Tory MPs over breakfast to promote his leadership.
PA
8/11 David Davis
Often seen as a possible caretaker prime minister if Ms May departed, but would want the job on a permanent basis. Has twice run for the Tory leadership. Enjoyed an Indian summer with a surprise return to the cabinet after the 2016 referendum. Eclipsed Mr Johnson by resigning first over the Chequers deal.
Would play hardball with Brussels. Now in a battle with Mr Johnson and Mr Raab to be the Eurosceptics’ standard-bearer. Aged 70, so his party may opt for someone younger
AFP/Getty
9/11 Andrea Leadsom
Following the Prime Minister’s second defeat over her Brexit deal, Leader of the house Andrea Leadsom hosted a dinner party at which “leadership was the only topic of conversation”, The Times heard. Leadsom ran against Theresa May in the 2016 leadership election before dropping out, allowing May to become Prime Minister
AFP/Getty
10/11 Priti Patel
Former international development secretary Priti Patel is thought to be positioning herself as a contender. One MP told The Independent “she knows she’s from the right of the party, the part which is going to choose the next leader, so she’s reminding everyone she’s there.” Patel left the government late in 2017 after it emerged that she had held undisclosed meetings with Israeli officials
PA
11/11 Liz Truss
Chief secretary to the Treasury Liz Truss has been rumoured to be a contender after a recent interview in The Times in which she proposed a number of policies. When asked about her desire to be leader, she replied “it’s never wise to rule anything out in politics but I’m absolutely not thinking about it”
PA
As voters went to the polls on Thursday for the European parliament elections, both the Tories and Labour were facing a drubbing, with the Liberal Democrats and the Brexit Party predicted to capitalise.
Dean Turner, UK economist as UBS Wealth Management, forecast that the pound could crash to as low as 1.15 against the dollar and close to parity against the euro in the event of a no-deal Brexit. He warned investors not to be complacent about the prospect.
“Despite mounting public impatience over the process, many top officials and lawmakers remain fearful of the economic damage from a no-deal exit,” said Mr Turner.
“Lingering uncertainty would likely cause firms to delay investment, and keep sterling under downward pressure.”
“A UK decision to remain an EU member would likely cause a swift rebound in sterling, which we believe is undervalued relative to its purchasing power parity level of around USD 1.58.”
