British Pound: Brexit's fear is back and sterling pays the price

Sterling fell as much as 0.65% against the US dollar on Wednesday to just over $ 1.26 before it got back a little. The currency has cut about 2.8% this month, and is heading for a record 13 fast days of decline against the euro, analysts say.

The fall comes as Britain again faces the prospect of a messy departure from the European Union.

Prime Minister Theresa May presented details of his last bid on Tuesday to get a Brexit agreement through the UK Parliament. Her new pitch, designed as a compromise, would allow MPs to hold a new referendum if they first supported their agreement.

But the plan was met with opposition from the political spectrum and appears dead upon arrival.

Now the pressure building for May is going down. Conservative party leaders met Wednesday to discuss changing party rules, a move that could have opened the door to her.

Finally, they did not change the rules that protect her from a management challenge, a conservative member known to the meeting told CNN. But Graham Brady, the group's leader named the 1[ads1]922 Committee, will meet the Prime Minister on Friday to discuss his future, the source said. The source asked not to be named, discussing internal party decisions.

  Blaming Brexit collapses British Steel in jeopardizing 25,000 jobs

are encouraging investors to pound the pound, without any signs of recovery any time soon.

The UK will leave the EU on October 31 after Brexit was delayed twice. EU officials have already said that they will not renegotiate the agreement they agreed in May earlier this year.

If British lawmakers continue to refuse to ratify Mays' deal, the country may have to leave the block without any action to protect trade – A government's own warning would be profoundly detrimental to the UK economy.

Analyst Oliver Harvey, analyst from Deutsche Bank, said the bank expects May to be replaced by a leading CEO in Brexit over the summer. This in turn increases the risk of a non-deal Brexit at the end of October,

Jameel Ahmad, Global Currency Strategy Manager at FXTM, said in a note Wednesday that he expects the pound to dip to $ 1.25 [19659002] as Mays vulnerability dominates headlines.

– CNN's Luke McGee contributed to this report

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