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British Pound Latest: PM Johnson Will Face a Vote of No Confidence Today

British Pound Latest: PM Johnson Will Face a Vote of No Confidence Today

Nick Cawley, Strategist

GBP/USD - Prices, Charts, and Analysis

  • Conservative MPs trigger a vote of no confidence.
  • A vote of no confidence will be held today.

UK Prime Minister Boris Johnson is facing a vote of no confidence from those within his party after the threshold of 15% of the party voted against the UK PM. According to Sir Graham Brady of the influential 1922 Committee, a ballot will be held between 1800 and 2000 UK today with arrangements for the vote announced later today. For Boris Johnson to remain in power he needs a simple majority in today’s vote. If he loses then a leadership contest, ex-Boris Johnson would be staged.

Pound Fundamental Forecast: UK Govt Support Provides Room for BoE Hikes

Sterling is little moved on the session with cable trading a touch higher due to the weakness of the US dollar. Initial support for the pair kicks in around 1.2460, while resistance is seen just under 1.2600. Little in the way of economic news to drive the pair today so consolidation ahead of tonight’s vote is likely.

For all market-moving economic data and events, refer to the DailyFX calendar

GBP/USD Daily Price Chart – June 6, 2022

British Pound Latest: PM Johnson Will Face a Vote of No Confidence Today

Retail trader data show 68.75% of traders are net-long with the ratio of traders long to short at 2.20 to 1. The number of traders net-long is 0.86% higher than yesterday and 4.04% higher from last week, while the number of traders net-short is 2.18% higher than yesterday and 0.13% higher from last week.

We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests GBP/USD prices may continue to fall. Positioning is less net-long than yesterday but more net-long from last week. The combination of current sentiment and recent changes gives us a further mixed GBP/USD trading bias.

What is your view on Sterling – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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