Pound Could Rally if Hunt Becomes UK PM, Albeit Temporarily

If Jeremy Hunt wins and goes on to become the next UK PM, GBP/USD could rally as high as 1.27, but this would be a temporary move.

Arslan Butt•Thursday, July 11, 2019•1 min read

Brexit is already cracking the UK economy

If Jeremy Hunt wins and goes on to become the next UK PM, GBP/USD could rally as high as 1.27, but this would be a temporary move. According to a Bloomberg poll, this temporary relief would be as a result of a reduced likelihood of Britain exiting the EU without a deal in place.

However, Hunt’s elevation to the PM would resurface all issues related to negotiating the Brexit deal and getting it passed through the Parliament, just like Theresa May faced. Unlike his competitor, Boris Johnson, Hunt is not too keen on pursuing a no-deal Brexit.

In the past three months, the Pound has lost around 5% of its value as the likelihood of a hard Brexit keeps rising. Furthermore, weak economic data out of the UK as the October 31 deadline for Brexit nears have also been exerting downward pressure on the Sterling lately.

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.