UK: Reports about May being replaced, perhaps by Lidington, GBP/USD set to move at the open

The British media is reporting about an attempt by several senior members of the ruling Conservative Party to oust PM Theresa May. Her de-facto Deputy David Lidington is touted as a replacement, perhaps at an interim capacity. Lidington said he is “100% behind the PM.”

The Times reports that several ministers are not pleased by the management of the Brexit process and especially by her speech on March 19th, where she criticized MPs for not passing the deal. Other reports suggest that May is trying to fend off the rebels by summoning Brexit-supporting ministers to her rural house in Chequers.  

UK Chancellor of the Exchequer Phillip Hammond called such attempts “self-indulgence” and called for an orderly Brexit under a plan Parliament can agree upon.  

The UK’s exit from the European Union has been postponed from March 29th to at least April 12th. A massive demonstration in favor of remaining in the EU was held on Saturday in London. Organizers said that a million people participated.  

Parliament will discuss the way forward on Brexit from Monday onwards. A set of indicative votes on alternative Brexit paths is expected.  

Brexit news has triggered significant volatility in Sterling. GBP/USD ended the week at around 1.3204. The developments over the weekend could trigger high volatility at the start of the new week in Asia.