Sterling awaiting a development, any development

With Prime Minister Theresa May's last ditch Brexit deal dead on arrival in Parliament, her own tenure at 10 Downing Street coming to an end and the Tory succession apparently awarding right of first refusal to Boris Johnson, the sterling has dropped to its lowest level against the dollar in five months, losing 3.8% in two weeks.

At this point almost any development, the resignation of Ms May, the abandonment of the current Brexit deal or the ascension of Mr. Johnson would likely have a beneficial effect on the pound.

 Ms May has been resisting, according to latest reports, scrapping her thrice rejected and much tweaked Brexit deal  or ending her premiership after compromise offers were denied by her own Conservatives and opposition Labour.  

After months of political turmoil in Parliament and an attempt by the Tories to remove Ms May as Prime Minister in December, neither the pro-Brexit members nor pro-EU remainers of her own party are willing to compromise, particularly on a deal whose main sticking points are unchanged.

Almost three years after the June 24^th  2016 vote to leave the European Union and the original March 29^th departure date Ms May is further from  having her Brexit deal approved by Parliament than at any time since she first brought it to the House. .

“All we have before us is division and deadlock,” said Ms May, without seeming to note that that has been the case since she first returned from Brussels with the text.

She indicated that the Brexit bill would be published on Friday so that members could read it.  Her office has said the bill will be put for a vote the week of June 3^rd.

The European Union elections are on Thursday, where both the Conservative and Labour slates are expected to be severely punished by British voters. A plurality of 30% or more is forecast to go to Nigel Farage’s newly formed Brexit party, more than the combined vote for the Conservatives and Labour.

The pound is 12% below its post-Brexit high close against the dollar of 1.4338 on April 16^th last year.