Orbex Market Flash

UK PM In Leadership Battle As MP's To Vote On Her Position

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While many might easily find cause to disagree with Theresa May politically, few can deny the caliber of her character. The embattled PM has fought over many long, arduous months and is now in the crucial stages of passing her Brexit deal.

However, just ahead of the “final meaningful vote” which was to be held in Parliament this week, the PM postponed the vote to embark on a last-ditch blitz around Brussels, meeting with European leader to seek “extra reassurances” on issues such as the Irish backstop. Reassurances will make the difference when it comes to returning the vote to parliament before the January 21st deadline.

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Vote Of No Confidence Presented Market

However, May’s painstaking campaign has now come under further attacks as news came through yesterday of a “vote of no confidence” being presented to the PM.

The leadership bid which was launched against May some weeks ago finally crossed the threshold yesterday of receiving letters from 48 MP’s backing the move.

With the 48 letters now received, Conservative MP’s will vote on whether the PM should retain her position as head of the Conservative party or be replaced. The vote will take place today between 6pm and 8pm GMT with results likely to come in an hour or so after.

May To Fight For Position

In a statement released today, the hardened PM said:

“I will contest that vote with everything I have got.”

Furthermore, May told reporters that a leadership change would “put our country’s future at risk and create uncertainty when we can least afford it.”

May added:

“A leadership election would not change the fundamentals of the negotiation or the Parliamentary arithmetic. Weeks spent tearing ourselves apart will only create more division just as we should be standing together to serve our country. None of that would be in the national interest.”

Technical Perspective

gbpusd

GBP has actually traded slightly higher today in response to news of the vote as traders sense that if May is replaced as PM, Brexit will at the least be postponed and potentially not go through at all.

GBPUSD continues to trade within the bearish channel from 2018 highs. To the topside, the key resistance level to watch is a retest of the broken 1.2699 level which was the prior 2018 low. Until this level is meaningfully broken, focus remains on further downside.

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