Jump to content

Where to for GBP as UK Prime Minister faces vote of no confidence?


Recommended Posts

The pound (GBP) is starting the week higher despite the turmoil in British politics as improved consumer sentiment is pushing risk appetite higher.

 

 

Daniela Sabin Hathorn | Presenter and Analyst, London | Publication date: Monday 06 June 2022 

The positive momentum in sterling suggests that markets are not worried about the outcome of the vote of no confidence in Prime Minister, Boris Johnson, as the impact on the economic outlook is likely to be limited.

GBP starts week higher despite political turmoil

Prime Minister Johnson is facing a vote of no confidence this afternoon from those within his party, as Graham Brady of the 1922 commission has confirmed.

GBP/USD

The pound is little move this morning. We have seen a little bit of a push to the upside. Let's bring up a chart now of the pound against the US dollar and we have seen, as you can see so far, some positive momentum here in the currency pair.

We have seen some weakness in the US dollar - that's probably one of the main reasons we have seen this slight move higher. But also the impact on the UK's economic trajectory is likely to be limited despite the outcome of this vote of no confidence this afternoon.

Economic sentiment

The move higher in the pound suggests that we've got broader issues that are in charge, especially this improvement in economic sentiment overall in the market. We've seen global stock markets pushing higher. This is obviously pushing that risk-on sentiment in the pound performing a little better here against the US dollar that I was mentioning just a second ago, little bit of a weakness there in the US currency, but also we're looking at the situation around this vote of no confidence. It differs from the ones we've seen in the past, most notably that of Theresa May's in the midst of the Brexit referendum.

Now, the impact on the economic outlook back then was much greater. The route that was going to be taken in the Brexit negotiations was really going to determine the movement in the pound, not so much this time around, as I said, the trajectory of the economic outlook isn't going to change much regardless of what we see.

And all in all, markets are expecting Boris Johnson to survive this vote and to see further on in the next few months what's going to happen with him.

But all in all, some stableness here in the pound, a little bit of a push to the upside with that improvement in overall market sentiment helping the British currency.

Link to comment
3 hours ago, MongiIG said:

Prime Minister Johnson is facing a vote of no confidence

British Pound Latest: PM Johnson Will Face a Vote of No Confidence Today

Jun 6, 2022 | DailyFX
Nick Cawley, Strategist

GBP/USD - PRICES, CHARTS, AND ANALYSIS:

  • Conservative MPs trigger a vote of no confidence.
  • A vote of no confidence will be held today.

Boris Johnson blamed as Tories lose seats in U.K. council elections | The  Japan Times

Link to comment
21 hours ago, MongiIG said:

British Pound Latest: PM Johnson Will Face a Vote of No Confidence

Political Uncertainty Adds to Gloomy UK Growth Outlook

British Pound (GBP) Forecast: Political Uncertainty Adds to Gloomy UK  Growth Outlook

GBP/USD FUNDAMENTAL BACKDROP

GBP/USD opened weaker this morning after yesterday’s vote of no-confidence kept the British Prime Minister Boris Johnson from immediate resignation. The vote which read 211-148 is not favorable for the party as it is clear that a large proportion seem to be at a disagreement which could sow the seed for forthcoming turmoil. The timing is unfortunate for pound sterling as the economy looks to be slowing and facing a potential recession. Recent key economic data from the UK has been showing signs of decline after last weeks poor manufacturing PMI print while we look forward to today’s services figure (see economic calendar below) for further guidance. On the contrary, the U.S. economy has not let up with better than expected Non-Farm Payroll (NFP), ISM manufacturing PMI and consumer confidence releases allowing the Federal Reserve to maintain its hawkish narrative to combat rampant inflation.

 

Jun 7, 2022 | DailyFX
Warren Venketas, Analyst

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • Commodity Markets Technical Analysis Elliott Wave Strategies for Bitcoin, Ether, Solana, TLT Bonds, US 10 Yr. Yields, USD/ DXY, UUP. Gold, GDX ETF, Silver, Copper, Nickel, Uranium, iron Ore, Crude Oil, Natural Gas  Commodity Market Elliott Wave Update:  Bitcoin & Ether, Wave iv) of 1 Dollar: DXY Wave b of (ii) rally. Bonds - higher. 10 Yr. Yields - lower Gold, GDX Wave (b) of  ii) Base Metals, Copper, Nickel, Uranium, iron Ore. Trend lower Natural Gas: Wave iv) corrective rally Crude Oil: Continue trending lower. Natural Gas Wave (iv) Trend lower Video Chapters 00:00 Bitcoin (BTC), Ether ETH/USD, SOLUSD 05:50 US Dollar Index, DXY / TLT Bonds. US Gov Bonds 10 Yr Yields 11:40 Precious Metals: Spot Gold XAU /GDX ETF / US Spot Silver XAG  14:25 Base Metals: Copper, Nickel, Uranium, iron Ore 18:30 Energy: Crude Oil WTI OIL / Natural Gas NG  26:24 End Analyst Peter Mathers TradingLounge™ Source: tradinglounge com   
    • While Layer 2 scaling solutions have helped alleviate congestion on blockchains like Ethereum, Layer 3 rollups are emerging as the next frontier for achieving ultimate scalability and cost-effectiveness. Three prominent layer 3 rollup stand out; ZKlink, Immutable X, and dYdX, each having its distinct strengths. .ZKlink stands out as a prominent player in this space, offering unique advantages compared to other Layer 3 protocols. While Immutable X Built on StarkNet focuses primarily on NFT marketplaces and gaming applications. dYdX utilizes StarkNet for rollups, achieving high throughput for trading activities. With each of the above focusing on a particular user in crypto space, ZKlink take it a bit far by prioritizing interoperability, liquidity solutions, and developer customization. ZKlink also the ability to bridge the gap between different blockchain layers and optimize scalability which makes it a significant force in shaping the future of decentralized applications.   The recent Bitget  listing of ZKLink native token further created buzz around the project due to the anticipation of the round one airdrop. Considering the fact that only ZK link utilizes fast financial transactions throughput using the innovative Ts-Evm makes it more unique and position it as the frontrunner in layer 3 rollup race.
    • I've been exploring numerous methods of passive earning over the years aside from spot trading. These methods include staking, futures trading, OTC trading, bot trading, copy trading, and launchpool. I've achieved some successes along the way, and now I'm trying to streamline and focus on just a few passive income opportunities. Actually looked into a project I encountered on X while browsing for opportunities. Branded as UPLAND, I was kinda drawn due to its Gamefi (NFT, metaverse) affiliation on Bitget's launchpool. Let's see what exploring this token fetches me this time 😁🤞🏻 Would love your shared experience(s) using this feature if any and what it's really like?
×
×
  • Create New...
us