Sterling has rebounded against both the Dollar and the Euro ahead of tonight’s Conservative Party no-confidence vote in party leader and prime minister Theresa May. The result is due shortly after 20.00 London time and markets appear to have reacted positively to reports that more than 150 of the 315 Conservative Party MPs had already publicly backed Theresa May which in turn reduced the odds of a hard Brexiteer taking over and pushing for the UK’s exit from the EU without a deal.
The GBP/USD cross, which had traded below 1.25 this morning, is back up around 1.265 while GBP/EUR, which had threatened to fall below 1.10, has pushed above 1.11. If Theresa May survives, this will at least remove one layer of uncertainty but markets will still have to grapple with what her game plan is for the next few days, weeks and potentially months.
