Reports circulated yesterday that there were growing numbers of MPs ready to submit letters of no confidence in Theresa May, but despite this, GBP/USD held steady. It was only as she addressed the CBI conference later in the day that GBP/USD shed a quick 70-80 points, albeit she didn’t say anything we hadn’t already heard before.
There turned out to be good support at the 1.2800 handle, and it wasn’t long before Cable recovered, helped in part by a softening Greenback. The pair has held firm and traded a steady range overnight.
It’s another potentially big day for the Pound with BoE Governor Carney speaking, along with other MPC members, following the release of the central bank’s inflation report. The threat of a leadership challenge is still looming, too, and herein lies more significant potential for a negative GBP shock.