Pound Could Rally if Hunt Becomes UK PM, Albeit Temporarily - Forex News by FX Leaders
Brexit is already cracking the UK economy

Pound Could Rally if Hunt Becomes UK PM, Albeit Temporarily

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

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

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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