Pound stutters amid May's DUP talk delays, support for 'soft' Brexit

While Theresa May battles to agree a pact with her Northern Irish kingmakers in order to form a government, fellow senior Conservatives are confident of securing a new 'softer' Brexit approach in forthcoming divorce talks with the European Union.

It was reported that Prime Minister May's attempts to form a government with the support of the Democratic Unionist Party might not be resolved until next week.

After last week's election saw the Tories lose their parliamentary majority, with 318 seats in the Commons, a vote-by-vote "confidence and supply" agreement with Northern Ireland's DUP has been May's chosen route back to power.

Talks between the two parties restarted on Wednesday, a senior Conservative source told Reuters, while the discussions were said to be “stuttering”, according to the Guardian, although there was agreement on "95%" of a potential deal, while the Telegraph reported this could mean May may not be able to form a minority government until next week.

Under the normal schedule, the Queen's speech would open the new parliament a week on Monday, 19 June, with a reading of the government's legislative programme for the coming year, which would then debated by MPs before being put to a vote on 27 June.

A potential announcement on the deal could be delayed until next week due to diary commitments of both leaders, the BBC reported, as well as the horrendous Grenfell Tower fire in west London, which killed at least six several people on Wednesday.

A delay to May's deal with the DUP means start of Brexit talks could be postponed.

Meanwhile, newly empowered post-election, Chancellor Philip Hammond has the backing of Damian Green, the PM's new deputy, in his battle to pursue a 'soft' Brexit by keeping the UK inside the EU customs union, The Times said.