Home Business News Pound gets small lift over news of Boris Johnson’s departure

Pound gets small lift over news of Boris Johnson’s departure

by LLB Reporter
7th Jul 22 10:27 am

Hopes of avoiding “an ugly exit from Downing Street” for Prime Minister Boris Johnson did give the pound a small lift.

The pound has risen to $1.1980, up half a cent this session, as the news breaks that Johnson is expected to resign today.

Matthew Ryan, head of market strategy at global financial services firm Ebury, said: “So far, GBP has taken the political uncertainty in its stride, and actually posted modest gains this morning on the headlines that Johnson was planning to resign.

“Markets were already fully expecting him to go, but news of an imminent resignation, and the avoidance of a likely messy and potentially ugly removal from office, has given the pound a modest leg up.

“But until a clear favourite to replace Johnson emerges, the City won’t have a clear understanding of potential policy implications.

“And even then, sterling’s value will be driven more by UK recession concerns and Bank of England monetary policy, Ryan adds.

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