Brexit News: UK PM May to Face Leadership Battle Today; Sterling Rattled
Sterling, Brexit and US dollar:
- UK PM May will face a ‘No Confidence‘ vote later today (18:00 – 20:00 GMT)
- Sterling unchanged after sliding lower Tuesday on challenge rumors
UK PM May Position Has Become Untenable
According to multiple sources, the 1922 Conservative Committee has received the required 48 letters necessary to trigger a vote of no confidence of UK PM Theresa May. According to these sources, the vote will be held today between 18:00 and 20:00 GMT. For the vote to succeed, 158 MPs will need to vote against the Prime Minister. If the Prime Minister loses the vote, the question of who will replace her will decide the short-term direction of Sterling, especially if a hard-Brexit minister is elected. Current bookmaker’s odds show Boris Johnson the favorite, just ahead of Dominic Raab and Michael Gove. Johnson is known as a hard Brexiter.
Sterling’s reaction to the official news was muted after falling sharply on Tuesday when the rumors first hit the wires. GBPUSD trades just under 1.2500, a near 20-month low.
GBPUSD Five-Minute Price Chart (December 11, 2018)
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