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Foreign exchange information; Mt4.mt5 trading software - Sterling Market

发布时间：2022-08-25 浏览：122

British Conservative MPs voted no confidence in prime minister Johnson on June 6. Voting results showed that among 359 Conservative MPs, 211 supported Johnson; 148 people wanted him to step down, but they did not reach the 180 votes required to pass the no confidence motion.

Johnson will continue to serve as the leader of the Conservative Party and the British Prime Minister. According to the current rules, Conservative MPs are not expected to hold a vote of no confidence within a year. Johnson thanked his colleagues for their support, saying that now it is necessary to unite in the name of the Conservative Party and concentrate on helping the British people; This gives Britain the opportunity to continue to strengthen its economy, and the government must help people maintain their livelihood. In addition, British Prime Minister Johnson refused to rule out the possibility of an early election.

Although Johnson's victory means that under the current party rules, he will not be challenged again within a year, he may not have been out of trouble: his predecessor Theresa May survived a similar vote in 2018, and had a greater advantage, but resigned a few months later.

Alan Ruskin, chief international strategist of Deutsche Bank, said that the vote was a signal that the current British leadership was not so safe, which increased the risk of cabinet resignation in the coming weeks. He believes that Johnson's victory is unlikely to affect investors' long-term strategy for sterling.

The pound was still strengthening after the news that Johnson would face a vote of no confidence. After Johnson won the vote of confidence, the pound stayed above 1.25.

Samuel tombs, an economist at Pantheon macroeconomics, said that on the whole, the market reacted positively to the news of this competition, and the pound once rose from 1.2500 to 1.2570. This seems to reflect a general principle that the market favors the conservative government, and under the leadership of the new leader, the conservative party may have a higher chance of winning the next election.

Shane ONeill, head of interest rate trading at validus risk management, suggested that Johnson could continue to serve as British Prime Minister for a period of time, which was very safe for the market. As for the factors affecting the future trend of sterling, he believes that the current political situation is secondary to major events such as inflation and the Bank of England's interest rate decision.

Market analyst Gary Howes said that the reason why the foreign exchange market is optimistic about British politics is understandable: replacing Johnson is unlikely to change the economic trajectory of the UK to a large extent. The strength of the pound may also indicate that broader problems are at work, especially the improvement in investor confidence reflected in the rise in global stock markets. For sterling, global market sentiment, UK domestic economic data and the outlook for central bank policy will remain firmly dominant.

On June 6, it was reported that the money market bet that the Bank of England would raise interest rates by 50 basis points before December, which was undoubtedly a potential positive for the pound.