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Reports are out that Andrea Leadsom is about to pull out of the race for leader of the UK Conservative Party, leading the way for Theresa May to  inherit David Cameron at No. 10.  We are still waiting for an official announcement. Update: it is now official: Leadsom quit.  If this indeed becomes reality, it is unclear if the then single candidate will need the confirmation of the party members or will replace Cameron swiftly.

More: May may enter Downing 10 as soon as today – GBP/USD tops 1.30

Leadsom  meets the press and announces her resignation. She says  that only 25% of the party in parliament supports her. This is a big disappointment for Brexit supporters / euro-skeptics. They wanted one of their own to lead: Johnson, Leadsom or Gove. Leadsom now pledges her support for Theresa May.

This means  less political uncertainty and more stability for the UK. Leadsom is at the more extreme end of the UK Tory party, expressing deep conservatism and campaigning hard for Brexit. Theresa May is more mainstream, a quiet Remain campaigner and more experienced.

However, if Leadsom  indeed quits, we could see Michael Gove return to the scene and compete against  May in the Conservative  contest on September 9th.  He  is also a Brexiteer that was supposed to run as Boris Johnson’s best man until he turned against him.

Updates:

  • It is up to the 1922 committee to make a decision about the rules: if May is given the reign  or if another candidate enters the scene.
  • Sources close to Cameron say “he will not be in the way” – May could become PM already today.
  • Leadsom speaks at 11:15 GMT
  • Party officials speak at 11:30 GMT.

GBP/USD twists and turns

GBP/USD is on the rise from the lows, trading at 1.2910 after reaching a low of 1.2850 earlier. The bounce, which  reached 1.2930, is  already worth 80 pips. The fall seen earlier was inspired by expectations that the Bank of England will introduce wide stimulus on Thursday.

The pound also fell on a repeat of the commitment to Brexit by leading candidate May. She previously said “we are all Brexiteers now”, respecting the wish of the British people.

Here is how it looks on the chart. In the meantime, GBP/USD is already at 1.2960, a rise of 110 pips off the lows despite the uncertainty about the potential return of Gove.

More:  GBP/USD prospects are not so good – 3 opinions

— more coming

GBPUSD bounces Leadsom quits July 11 2016