Sterling rebounds after May's vote defeat



Hi everyone,

So as expected, Theresa May's deal was historically voted down last night and now we wait to find out if she will continue on as PM next week. No-one at this point in time is expecting Jeremy Corbyn's no confidence motion to pass, but stranger things have happened!

What has surprised the majority of analysts is the Pounds reaction after the vote. Sterling dropped 0.5%+ across the board as the vote loomed yesterday afternoon, but once the result concluded, £ reacted positively even with the news of a no-confidence vote. How?

This week MP's will table their own versions of a deal and we will see groups of MP's backing each other's bill. The fact is, no-one will end up with their perfect Brexit scenario, so it's down to Theresa May to listen to her cabinet and compromise, before speaking to the EU.

Right now, there is no majority position in parliament which effectively means Article 50 will have to be be extended. Sterling has stabilized because of this and the markets are starting to factor in more and more that a 'no-deal' scenario will not come to fruition. 

The waiting game continues with this mess, but for now at least £ sellers are enjoying some unexpected gains!




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