GBP/USD Weakens After BoJo Comes to Power, as Expected

Posted Wednesday, July 24, 2019 by
Arslan Butt • 1 min read

As expected, GBP/USD turned more bearish yesterday after Boris Johnson was officially announced as UK’s next PM. On Wednesday, it continues under the 1.25 level and is trading at around 1.243 at the time of writing.

Boris Johnson’s victory has renewed fears of a no-deal Brexit, which he is keen on, but which could push UK’s economy into a recession and impact businesses adversely for some time to come. In the coming days, the focus will be on how many of his ministers will be opposed to Johnson’s plans for a hard Brexit.

So far this month, the Pound has already lost 2% of its value against the US dollar over Johnson’s no-deal Brexit rhetoric. The EU has also continued to insist that it is unwilling to renegotiate any deal with the UK other than the current withdrawal agreement. Does this mean the UK will have to exit the EU with no deal then?

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
0 0 vote
Article Rating
Notify of
Inline Feedbacks
View all comments