There’s many in the market pointing to the Telegraph story about MP’s who wil ask her to quit
- Tory rebels plan to tell May to quit within three days
- Say they have a 50/50 chance they’ll ask her to quit in the next 3 days
- Will demand she quits before the end of the year
The Telegraph story is getting a lot of attention and while it might be behind some of the drop, it’s not the whole reason. As I’ve mentioned just now, there’s action in the yen to look at.
There’s no denying that May had a stinker of a time during her Conservative party conference speech. She got hassled by a well known prankster who handed her a P45 signed by Boris Johnson, and then suffered a coughing fit through the rest of her speech. It never rains but it pours eh? This news about “rebel MP’s” making demands is part and parcel of UK politics. I’ve never known a party or leader who hasn’t had opponents. Even Corbyn had to sack half his party when he took over, and many more resigned. The issue here is that we’re in the middle of Brexit and news like this is amplified and thus market’s react.
I should imagine that this story amounts to nothing come three days time but you can bet the press will be going into overdrive this weekend, and that could make for a volatile open for the pound on Monday if there’s big news.
For now, stick to the levels in play now and trade them accordingly, some of which I highlighted in GBPUSD and EURUSD earlier today. GBPUSD has pulled up roight at the 55 DMA.