The prospect of a new rally is ahead of the Pound if the Prime Minister, May, avoids defeat by the current no-confidence vote, but even this victory will not hinder the chaotic state of the currency.
And while Cable continues to climb after it was announced that May would seek Conservative support to quell the rebellion, traders believe that even a thin win would be enough to give the currency a rest. However, investors have to take into account the still pressing risks to the forthcoming Brexit vote by Parliament, the prerequisites for new parliamentary elections or a referendum. Chances for my to survive are 78% according to bookmakers.
The vote of no-confidence vote is expected to take place this evening around 23:00 GMT, but it may be delayed and displaced until the end of the American session or the start of trading in Tokyo, where thin liquidity will not be so dramatic movements at the pound.
Banks came out with different forecasts in the two scenarios in which Mae survived the vote and suffered a loss.
If Teresa May survives the no-confidence vote
If Teresa May suffered a loss of no confidence
Source: Bloomberg Finance L.P.
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