The pound is having a rather soggy start to the week. It has fallen against the three majors, although not by much.
Traders appear too baffled amid the political fog of Brexit uncertainty to send it anywhere fast. It is down 0.32% against the euro at €1.1292, down the same against the yen at 140.8150 and almost half a percent lower against the dollar at $1.2845.
FTSE opens down, pound lower
The FTSE 100 has opened 0.36% lower at 6,838.25.
The FTSE 250 is 0.34% lower at 18,424.09.
Meanwhile, the pound is down against the dollar so for this morning - off 0.18% at $1.2858.
It is marginally off against the euro at €1.1295.
'Sterling may rally'
Seema Shah, senior global investment strategist at Principal Global Investors, believes that the pound will likely strengthen.
“Sterling may rally further as fears of a Corbyn-led
government recede. The question is how much further could the pound strengthen?
Prior to the Brexit vote, sterling sat at around $1.50 against the US dollar. As long as the possibility of “no Brexit at all” is alive, sterling could be
drawn up in that direction," she said.
"However, given the untold damage already inflicted
on the economy by the uncertainty of the past two years, it is doubtful that
sterling will get within touching distance of the $1.50 mark – even in the most
optimistic case of Brexit being stopped entirely."
What's Plan B?
Dean Turner, UK economist at UBS Global Wealth
Management, says it's still hard to know which way sterling will go, given the continued political uncertainty.
will now swiftly turn to Plan B. Our suspicion is that when we hear the PM’s
next steps on Monday, it will look remarkably like Plan A, which won’t offer
markets much guidance.
"The salient question
will remain – can the PM secure legally binding reassurances on a Northern
Ireland backstop that boost the chances of getting the Withdrawal Agreement
through Parliament – or will she change tack and risk further internal strife?"
'All roads lead to a soft Brexit'
According to XTB's chief market analyst David Cheetham, it is likely that there will be a second Commons vote on an amended version of Theresa May's withdrawal deal.
"It now seems that all roads lead
to a softer version of Brexit, which will require an extension of Article 50
beyond March and ultimately be positive for sterling," he said.
"The pound remains not far
from its highest level since November against the US dollar and while the road
ahead remains rocky, the path of least resistance now appears to be higher."
A quick update on sterling as the US markets open.
Against the dollar, the pound is now off the day's highs but still in positive territory - up 0.05% at $1.2867.
Pound makes a modest gain
The pound is rising against the dollar, up 0.2% at $1.2882, as the London markets open.
Against the euro the pound is up around the same amount at €1.1299 - its highest level against the single currency since November.
Calm reigns in Asian trading floor
The atmosphere on the trading floor at Standard
Chartered in Singapore – one of the biggest in Singapore - has been calm all
morning, according to Asia Business Correspondent Karishma Vaswani.
She said there had been been minimal movement in the pound in early Asian trade, with traders
telling her that Brexit fatigue was creeping in.
The market had been
expecting Theresa May to lose this vote; the margin by which she lost is in
itself was “irrelevant”, according to the traders.
BBC Radio 5 live
There was not much reaction in the currency markets to last night's heavy defeat for Theresa May's Brexit plan.
"Investors look forward to the next event. What they are seeing is no resignation from Theresa May. And that, perhaps, means time will not be lost," said Jane Foley, head of foreign exchange strategy at Rabobank.
"The other thing that has really comforted investors is the fact that, although there will be a no confidence vote today, it looks as though Theresa May could well win it.
"And then we have Theresa May indicating she will look cross-party now for support to get the Brexit deal done. So there is an indication that maybe there will be a deal.
"Politically nothing much has really changed... and there doesn't seem to be a will on either side for a no-deal Brexit.