It is not everywhere that the possible removal of the head of government is celebrated by investors as a step towards political stability. In the case of Britain, they may have a point.
The pound was the best-performing major currency on Monday after British Prime Minister Boris Johnson got the news that evening face a vote of no confidence by lawmakers from his own ruling Conservative Party. The challenge to his leadership follows widespread anger about parties held in Downing Street during the COVID-19 lockdown. Mr Johnson hung on to his job by a vote of 211 to 148, which may help explain part of Sterling’s overnight plunge. It gained some ground later on Tuesday.