The Brexit-Chaos in the UK has unsettled investors on Wednesday. The pound went on to ascent and descent, after the news of a vote of no confidence against the Prime Minister, Theresa May, was known. The British currency initially fell on 1,2475 Dollar, but then in a matter of minutes by 0.5 percent to 1,2548.
After the cancellation of a Brexit vote in the lower house, more and more Conservatives had to trust a vote of no confidence against May be sought. On Wednesday, the required number of applications from conservative members of Parliament had been reached, and informed the competent Committee Chairman Graham Brady. A vote is planned for the evening.
According to statements by justice Minister David Gauke for the end of March planned EU would have to be moved to the exit in the event of a defeat of May. “Whatever the vote turns out, a huge uncertainty will remain,” said currency expert Neil Wilson from the trading house Markets.com. The pound could weaken as a result. “The fundamental question for the pound is not who leads the government, but what that means for the Brexit.”
GBP/EUR — — (–) Forex vwdXRATE 1T 1W 3M 1J 3J 5J For detail view
May had visited on Tuesday in Berlin and other European capitals, the EU wresting concessions, especially to the future of the border between Ireland and Northern Ireland. The uncertainty among investors was also reflected in the credit markets. The cost of insuring against default (CDS) increased in the UK significantly, and marked the highest level since the turmoil immediately after the Brexit Referendum in June 2016.
in Contrast, the UK stock market is responding so far behind on the latest developments. The FTSE100 Index gains in London on a percent to 6878 points.
