Pound Sterling (GBP)

GBP/EUR - Today's data summary

% change
+0.01%
Price Euros
1.1329
Change
0.0000
As of 01:31 19 Jan 2019

GBP/JPY - Today's data summary

% change
+0.01%
Price Yen
141.3150
Change
+0.0200
As of 01:35 19 Jan 2019

GBP/USD - Today's data summary

% change
0.00%
Price US dollars
1.2874
Change
0.0000
As of 01:31 19 Jan 2019

Latest updates

FTSE opens down, pound lower

Pound coins
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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'

Theresa May
NurPhoto

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?

Pounds, dollars and euros
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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.

“Attention 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'

EU and UK flags at Westminster
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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."

Sterling update

chart
BBC

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

pound coins sitting on dollar note
Getty Images

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.

Pound docile

BBC Radio 5 live

Pound coins
Getty Images

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.

'Pound could rise if May falls'

pounds and euros
Getty Images

UK-based foreign exchange firm Monex Europe says the pound could rise in the coming weeks, despite the continued political uncertainty.

"The outcome of the vote of no confidence is obviously the first major question for sterling at this point," said Monex Europe's head of market analysis Ranko Berich.

"Our view is that tonight's small sterling rally reflects the marginal increase in the chance of a Labour-led soft Brexit, so if May falls we could see further sterling strength. The pandemonium of a general election, however, could well end up as a net negative as the polls change from day to day."