Sterling rebounds from 20-month nadir on bright prospects for May

Sterling rose over 1% in American trade off April 2017 lows against the greenback following earlier inflation data from the US, while reports indicated UK PM Therese May will get up to 158 votes over 33 in the upcoming no-confidence vote on her government. 

As of 05:54 GMT, GBP/USD rose 1.23% to 1.2741, with an intraday high at 1.2671, and a 20-month nadir at 1.2478. 

May asserted in earlier remarks that holding early elections won't be in the interest of the UK, same with holding another Brexit vote, warning that failing to reach a Brexit deal could mean no exit. 

May added that next deadline for a Parliament vote on Brexit will be determined after further talks with EU leaders, asserting again the importance of an organized Brexit. 

The pound surged from 20-month lows on strong prospects for May to pass the no-confidence vote, especially after putting off a planned Parliament vote on Brexit for fears of outright losing it. 

May said no other vote is expected to occur before January 21, while maintaining that the current deal is the best possible outcome. 

US Inflation Data 

Earlier US data showed consumer prices were unchanged in November as expected, down from October's 0.3% increase. 

Core prices excluding food and energy, rose 0.2% as expected, and also the same as October.