Markets assume Theresa May can survive confidence vote and cut risk of a no-deal Brexit leader. The pound has rallied amid speculation Theresa May can survive the vote of confidence against her, lowering the chances of a hard Brexit leader winning control of the ruling Conservative party.
Sterling rose by more than 0.4% against the dollar and by more than 0.2% against the euro on Wednesday morning, after Tory rebels triggered the vote on May’s leadership of their party.
In the latest twist for sterling in a turbulent week, the pound rose to $1.2534 against the dollar and €1.1056 against the euro.
Adam Marshall, the director general of the British Chambers of Commerce, said: “At one of the most pivotal moments for the UK economy in decades, it is unacceptable that Westminster politicians have chosen to focus on themselves, rather than on the needs of the country.
“Our firms are worried, investors around the world are baffled and disappointed, and markets are showing serious strain as this political saga goes on and on.”
Stephen Martin, the director general of the Institute of Directors, also criticised MPs. Martin said: “The last thing businesses needed today was even more uncertainty – and yet politics has managed to deliver on that once again.