Breaking: UK PM May survives the no-confidence vote, Pound eases

FXStreet Team FXStreet

The result of the no-confidence vote is out. 200 MPs voted in favor of the Prime Minister, out of a total of 317 Tory MPs eligible to vote. She needed a simple majority to retain her party's leadership.

The GBP/USD pair surged over 1.0% ahead of the result, as optimistic markets believed May would win as several lawmakers voiced their support ahead of the secret ballot. The pair's advance is the largest in over a month, yet fell short of driving it above the 1.2660 level, the former yearly low.

Furthermore, Jeremy Corbyn reminded PM May earlier today that the Brexit deal, beyond May's leadership, needs to be approved by the Parliament. PM May reached a stalemate situation, as her EU counterparts refuse to re-open negotiations, while in the UK, the Parliament won't vote the deal as it is. PM May said that the deal will likely be submitted to Parliament by the ends of January.

The GBP/USD pair is now battling to sustain gains above 1.2600, having fallen to 1.2591 right after the positive news. With her leadership out of question, attention returns to her ability to deliver a Brexit deal, something quite unlikely considering 117 MPs don't believe in her promises.

Mrs. May will soon offer a speech outside Downing Street

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FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

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