As UK PM Teresa May tries to reach the best deal with EU on the Brexit and persuade the parliament, Conservative lawmakers have raised a no-confidence vote against Mai for threatening her leadership. But she quickly warned us that she would not resign, but would defend her vision of UK leaving the EU. And even warned members of parliament that the overthrow will not make getting the package of exit Britain easier, but it will bring delay and confusion.
It should be noted that the vote of no confidence will be limited to members of the Conservative Party only and not the entire Parliament. If she is dropped as a party leader, he will be asked to appoint a new prime minister for several weeks, Mai warned her during her remarks today, noting that this situation would put the country in a bind and create uncertainty.
Sterling fell to a 20-month low at 1.2477, but quickly reversed course after the UK Justice Minister indicated that the delay in activating Article 50 would be required if the vote was lost. The movements of the currency will remain dependent on the developments of the brexit file for the coming period.
As for the US dollar, for a third straight day, US bond yields rose ahead of the Fed meeting next week amid expectations of a fourth consecutive rate hike. The greenback continued to rise after the release of US inflation data, with the consumer price index rising by 2.2% year-on-year, while growth stabilized on a monthly basis.
Elsewhere, markets are looking ahead to tomorrow's Swiss interest rate decision at the SNB's latest meeting this year. The bank is expected to keep interest rates unchanged at 0.75% for the 16th meeting as the bank continues its expansionary monetary policy as inflation stabilizes near zero. The bank may prefer to maintain that policy for longer than the time until signs of recovery in economic growth and inflation begin to emerge.
