Pound Holds Its Poise on Speculation PM Johnson Will Win Vote
- Bookmakers see the prime minister winning Monday’s showdown
- Sterling’s volatility structure is inverted over short term
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The pound is shrugging off news that UK Prime Minister Boris Johnson will face a leadership vote later Monday on speculation that he may win the showdown.
Sterling surged as much as 0.7% against the dollar soon after news broke that the minimum threshold of letters from at least 54 MPs to trigger a no-confidence vote had been met. Tory rebels would need 180 votes to remove Johnson and prompt a leadership contest to choose the next prime minister. Bookmakers are offering long odds on Johnson’s ouster, suggesting their belief that such a scenario is unlikely.