GBP/USD Makes a Slight Climb Higher Despite No-Deal Brexit

Boris Johnson's victory may not be good news for Brexit, but it helped GBP/USD climb higher above 1.25 briefly on Wednesday

GBP/USD

After weeks of uncertainty, Boris Johnson finally took over as UK’s next PM. While this may not bode well for Brexit, with his interest in taking Britain out of the EU without a deal, it has helped strengthen GBP/USD a little. The Cable finally climbed above the 1.25 level on Wednesday but has weakened once again to touch 1.247 at the time of writing.

The brief climb could have been caused due to traders shorting their positions after the results were announced, driven by a “buy the rumor, sell the fact” sentiment. A no-deal Brexit continues to weigh on the markets, with fears that the UK economy could dive into recession in such a scenario.

Confusion reigns high, with Boris Johnson determined to take Britain out of the EU on October 31, with or without a deal. To this effect, he has sacked over half the UK cabinet, who were known supporters of Theresa May, and replacing them with right-wing pro-Brexit ministers.

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.

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