Confidence in Theresa May has eroded.
Traders in the U.K. on Tuesday are still assessing the political storm that could bring a new general election and complicate the country’s Brexit negotiations.
The pound GBPUSD, -0.0754% tumbled Monday after Foreign Secretary Boris Johnson resigned over disagreement with Prime Minister Theresa May’s plan for exiting the European Union.
While BoJo’s move ramped up speculation that he’s preparing to launch a leadership challenge against May, analysts on Tuesday were noting that she has made it through tough situations in the past.
“Theresa May has survived many setbacks, and several times she has been called ‘dead woman walking,’” said Naeem Aslam, chief market analyst at ThinkMarkets UK, in a note.
May weathered pressure to resign this past November, when some in her Conservative Party said she has become a liability in Brexit talks. She also stayed in her post in June 2017 after facing calls to step down when her election gamble to increase her party’s majority in parliament failed.
But maybe this time she’ll actually be shown the door? That could be the suggestion in the above chart, which comes from Orb International and is based on the research firm’s recent survey (h/t Daily Shot).
A record high of survey respondents — 56% — said they don’t think May will get the right deal for Britain in the Brexit negotiations. Just 26% said they think she will get the right agreement with Brussels, with that level of support matching a low hit last fall.
Read more: 4 things that investors need to know about the latest Brexit turmoil
And see: 2 years after Brexit vote, these charts show the U.K. economy losing momentum
But some observers are focusing their criticism on Johnson. The U.K.’s Sun tabloid, which is owned by MarketWatch parent News Corp., said on its front page Tuesday that it agreed with soccer fans who are “begging politicians to get a grip.” The newspaper featured a big photo of Johnson and asked the following: “Don’t you know there’s a bloody game on?” — referring to England’s much-anticipated World Cup semifinal match on Wednesday against Croatia.
The pound was dipping Tuesday against the dollar after slumping Monday, while the FTSE 100 equity benchmark UKX, +0.22% was edging higher.
“All eyes remain on the pound,” said Kathleen Brooks, research director at Capital Index, in a note Tuesday.
“Every hour that May holds on to power strengthens her position. If she can make it to the end of the week without further upset, then we could see a more harmonious U.K. government start to reflect well on the pound.”