Sterling drops to its lowest level in three weeks, as Tory Brexit's divisions are on the bill

LONDON (Reuters) – Sterling slipped to a three-week low on Tuesday as investors worried about controversy surrounding Prime Minister Theresa May's escalation of the Brexit plan at the Conservative Party's power.

Sterling's fortune is motivated by the headlines on the May proposal that Britain would leave the European Union in six months and on its ability to persuade the bloc and key members of its own party of the fact. 39; accept.

Sterling briefly commented Monday on a Bloomberg report that the UK government could backtrack on customs control between Britain and Northern Ireland, a major hurdle to Brexit.

At 8:15 am GMT, all of these gains were dropped. They fell 0.4% to $ 1.2989, its lowest level since September 12th. They remained unchanged against a weaker euro at 88.79 pence.

At her party's annual conference this week, May defends her so-called Checkers plan to leave the EU. Critics, including his former foreign secretary, Boris Johnson, who is due to speak at the Conservatives' conference on Tuesday, openly challenge her.

"The conference is a minefield for the pound sterling. We are trading title, "said Jeremy Cook, Head of Foreign Exchange Strategy for WorldFirst.

He said that traders are more focused on the clues as to whether Britain could be about to offer concessions to Ireland over the EU and over $ 50,000. other blocking points in anticipation of the decisive European summit at the end of October.

"The bias of the pound is down," he said.

MUFG analysts said Monday's relief rally suggested that "the pound should trade with some volatility for the rest of the week".

A concern for investors and a potential downside risk for the pound sterling is the prospect that May's own party is contesting her leadership.

On Tuesday, May said that she planned to stay "long term" while she was urging her party to support her plan for Brexit.