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.