Brexit Has Trashed The Pound. May’s Resignation Offers No Relief

British pence
British pence
Matt Cardy/Getty Images

The pound edged higher to almost $1.27 on Friday following May’s announcement that she’ll step down in June after failing in her bid to secure Britain’s exit from the European Union.

But sterling has dropped 2.9% this month against the US dollar and is the worst performer of the world’s 10 major currencies. It’s also been on a losing streak against the euro, and there’s little sign of the pressure easing up any time soon.

That’s because whoever succeeds May as prime minister will face the same Brexit nightmare. The European Union has said it’s done discussing the terms of Britain’s departure. And the current deal, negotiated by May, faces seemingly insurmountable opposition in Britain’s parliament.

“To borrow a phrase, nothing has changed, or at least, very little has,” Edwin Morgan, the head of the Institute of Directors, a business lobby group, said in a statement. “A new leader will be faced with the same political challenges and the same economic realities.”