Following Prime Minister Theresa May's postponement of the final vote on her Brexit deal on Tuesday, rebel members of the Tory party have now decided to challenge her leadership. The rebels have the required 48 votes of party members to trigger a vote of no confidence by all 315 Conservative MP between 6 and 8 PM GMT today.
A total of 158 votes would force Theresa May to step down and open the door to a party leadership contest.
Because Parliament would need weeks to find an agreed candidate, considerable time and effort would be spent on a doubtful cause since a new leader would face the same issues going forward. Under such circumstances, it seems improbable that the rebel Tories will be able to gain the support of 158 MPs.
Accordingly, despite a bounce back during this morning's trading session of the pound, we expect further volatility on the forex market. GBP/USD is currently trading at 1.2539, heading along 1.25 short-term.
Disclaimer: While every effort has been made to ensure that the datat quoted and used for the research behind this document is reliable, there is no guarantee that it is correct, and Swissquote Bank and its subsidiaries can accept no liability whatsoever in respect of any errors or omissions, or regarding the accuracy, completeness or reliability of the information contained herein. This document does not constitute a recommendation o sell and/or buy any financial products and is not to be considered as a solicitation and/or an offer to enter into any transaction. This document is a piece of economic research and is not intended to constitute investment advice, nor to solicit dealing in securities or in any other kind of investment.
Although every investment involves some degree of risk, the risk of loss trading off-exchange forex contracts can be substantial. Therefore if you are considering trading in this market, you should be aware of the risks associated with this product so you can make informed decisions prior to investing. The material presented here in not to be construed as trading advice or strategy. Swissquote Bank makes a strong effort to use reliable, expansive information, but we make no representation that it is accurate or complete. In addition, we have no obligation to notify you when opinions or data in this material change. Any prices stated in this report are for information purposes only and do not represent valuations for individual securities or other instruments."
By Vincent Mivelaz