Pound to euro exchange rate: Strengthening pound indicates May VICTORY
The pound sterling is currently trading at €1.1117 against the euro, according to Bloomberg after opening at €1.104. Sarah Hewin of Europe Standard Chartered explained how the pound has fluctuated following the decision to drop the crucial Brexit deal vote on Monday.
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There is some relief that if Theresa May wins, she will be trying to get some assurances from Brussels
A vote tonight will decide if the Theresa May will remain as Prime Minister after 48 Tory MPs called for a vote of confidence in her premiership.
Speaking to BBC News, Ms Hewin said: “When the rumours emerged that there was going to be a leadership challenge or a confidence vote in the Prime Minister, we saw the pound falling quite dramatically last night.
“This morning when the confidence vote was confirmed, the pound reached its weakest point since April 2017. Since then we have seen the pound strengthening.
“And that seems to be that as the day has gone on and more MPs have shown that they will vote for Theresa May, the pound has taken some relief in that and we have seen a recovery.”
Pound to euro exchange rate: Sterling strengthens as Theresa May faces confidence vote (Image: BBC•GETTY)
Ms Hewn said markets are “most concerned” with the prospect of a no deal Brexit.
She added: “I think markets are most concerned that the UK could leave on March 29 without a deal in place, which many people think would be damaging for the economy and when we get that sort of muse then the pound suffers.
“So, there is some relief in the fact that if Theresa May wins, she will be trying to get some assurances from Brussels and the deal that she has agreed with brussels has something of a chance of actually getting through Parliament when it is presented for the meaningful vote.”
Chairman of the backbench 1922 Committee Sir Graham Brady announced this morning that a total of 48 MPs had submitted letters of no confidence in the Prime Minister, meaning the required threshold had been met for a vote.
The vote is set to take place between 6pm and 8pm and the results will be announced shortly afterwards.
Mrs May pledged to “contest this vote with all I’ve got” as she spoke on the steps of Number 10 Downing Street on Tuesday morning.
She added: “We must and we shall deliver on the referendum vote and seize the opportunities that lie ahead.”