Sterling creeps higher as markets prices in...>

FOREX: Sterling creeps higher as markets prices in May's survival

-Letters of no confidence in the UK PM finally hit the key threshold this

morning, formally triggering a vote among UK Conservative MPs this evening.

Somewhat surprisingly, GBP rallied following the call of the vote. Numerous MPs

(cabinet members as well as rank-and-file lawmakers) have declared their

widespread support for the PM, forcing markets to price in the odds of a victory

for Theresa May at approximately 2100GMT/1600EST today. As a result, GBP is the

strongest performing currency in G10 Wednesday, although yesterday's GBP/USD

highs are yet to be challenged.

-At the other end of the table, SEK is the weakest major currency today as CPI

numbers drifted below expectations, with CPI inflation falling into negative

territory on a monthly basis. EUR/SEK made light work of yesterday's highs, the

50- and the 200-dma before stopping shy of the 100-dma at Sek10.3821. Risk is

generally recovering, with global equity futures in positive territory.

-US CPI data takes focus from here, with November average weekly/hourly earnings

also due.