Pound Recovers after Rough Night

Barbara Zigah

The Pound Sterling recovered from the overnight 20-month trough despite continued threats to the Prime Minister's position by members within her own party. Theresa May has said that she would fight any challenge, though there are now enough votes to force a no-confidence vote against her; that vote is scheduled for later today. Analysts say that they are not positive the challenge will succeed, as it will mean those who voted against her would be blamed for the hard Brexit outcome. Moreover, they say that a failure to oust her would mean that Ms. May would likely intentionally isolate the party members who voted against her.

As reported at 11:38 am (GMT) in London, the GBP/USD was trading at $1.2525, up 0.32% and off the session low of $1.2478. The EUR/GBP was trading at 0.9046 Pence, down 0.19%; the pair has ranged from a trough of 0.90250 Pence to a high of 0.90690 Pence in today's trading session.

Pound Traders Wary Ahead of Vote

Analysts are divided about the outcome of today's vote; some believe Ms. May to be safe because it took such a long time for her party to find the votes needed to trigger the call for the no-confidence vote. Moreover, they believe that those party members who do vote against her have too much at stake to lose if they can't ensure a win. Other analysts feel the vote there is a greater likelihood that she will be ousted. Regardless, analysts are in agreement that market players are in for a roller-coaster ride afterward, with volatility especially high if she is defeated or only narrowly escapes defeat.

Barbara Zigah

After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.

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