US Dollar (USD)

BBC

The pound has pushed higher, up nearly 0.7% at $1.2573, after that tally of MPs indicating Theresa May has the backing of enough MPs to win tonight's vote.

BBC

The pound is clinging on to levels above $1.25.

The pound is also up 0.3% against the euro - trading around 1.1067 euros.

Or one euro is around 90p.

Despite [tonight's vote of no confidence in the Prime Minister] the pound is actually edging higher on the day as it looks to recover from the sizable declines so far this week. Even though her job is on the line, the vote could in fact end up delivering some positive news, not just for PM May, but also for the pound. Given the time it has taken to reach this point it is pretty clear that there’s not overwhelming support to oust the PM, and should [Mrs] May survive this contest by a sizable margin then it will likely serve to embolden her position and could well spark a recovery in the pound following the recent declines.

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So why has the pound spiked this morning? (Although admittedly its only a bit higher than its 20-month low.)

Well, it appeared to get going after justice minister David Gauke said the government would have to delay Article 50 - Britain's notice to withdraw from the European Union - if Prime Minister Theresa May lost a no-confidence vote.

BBC

So the pound is now back above $1.25 - the level investors are likely to be watching during the day ahead of the confidence vote in Theresa May.

BBC

Here's that move in the pound against the dollar after confirmation of a no confidence vote in Theresa May tonight.

BBC

In early trading sterling has managed to clamber back above $1.25 after a volatile two days in the markets. It is still near 20 month lows.

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Any clarity on the Brexit situation could lead to a bounce in the pound.

That's the view of Pimco's Mike Amey who was a guest on Wake Up to Money.

"We would say there is scope for the pound to come up a little bit if we get some kind of clarity," he said.