13 November 2017 at 12:38 GMT
- GBP sold across the board on reports that May could face no-confidence vote
- GBPUSD lost about 1%
- EUR slips in sympathy wth GBP
- European shares decline, though healthcare and consumer goods stocks cling to gains
PM Theresa May's fragility and the prospect of a hard Brexit are
hurting sterling. TF Montage / Shutterstock
By the Global Sales Trading Team
- European shares fall though healthcare and consumer goods stocks are clinging to positive territory.
- GBP remains offered across the board as markets digest the letter of no confidence towards prime minister Theresa May reported to be in preparation by a number of conservative MPs.
- GBPUSD dropped about 1% to 1.3064 as May faces a widening revolt within her own party with 40 Conservative MPs expected to sign a letter of no confidence. A leadership contest would further complicate already difficult Brexit negotiations.
- The euro was also marginally lower at $1.1638 in sympathy with GBP.
- European bonds rallied, supported by gilts and Belgian debt in particular, which benefited from having next week’s new auctions cancelled
- Gold prices slowly recover from Friday’s fire sale as falling yields and a stronger yen provide support
Please click on the attached PDF for the Saxo Bank Global Sales Trading team's overview of the mid-session movements seen in forex, equity, FX option, commodity, and bond markets.
Mid-session Europe: November 13, 2017