The Pound Sterling value has risen against both the dollar and the euro in response to the news that a no-confidence vote in Theresa May has been triggered.

This follows disastrous performance earlier in the week, which saw the pound drop to its lowest levels against the dollar this year following the news that May would be delaying the Brexit Withdrawal Agreement vote.

The pound’s value against the dollar has remained subdued but erratic since. However, as news of a no-confidence vote began to circulate this morning, it briefly dropped to $1.2491, before rising to $1.2540 once the vote had been announced.

Against the Euro, the pound saw a similar rise in value, jumping from €1.1031 to €1.1071 as the vote was announced.

However, this still means the pound is considerably lower than almost any other time this year.

The Pound Sterling value vs dollar
The value of the pound rose against the dollar this morning as the no-confidence vote was triggered

Boost in Pound Sterling value indicates market confidence in May

The rise in the Pound Sterling value against both the dollar and the euro is a sign that the markets have confidence in May’s ability to win the challenge to her leadership.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

And notably, if May was to succeed, another such vote would not be allowed to be triggered for another 12 months, giving increased stability to a government that has been on ever-more shaky ground as late.

As a result, the decision to call the no-confidence vote could be interpreted as a means of giving the Prime Minister a stronger foundation.

However, with a fraught day ahead the pound could still see fluctuations.

Theresa May will be facing questions in Parliament at noon, in a session that will likely become a grilling, and which could be significant in the ultimate outcome of the vote.

The ballot itself will begin at around 5pm today, with results expected at 9pm.