Sterling Feeling Pressure of PM Race

Sterling under pressureSterling continues to be under heavy pressure a FX traders await the outcome of the race to replace Theresa May as Prime Minister. The winner, largely expected to be Boris Johnson, will be announced today and then installed tomorrow. If, indeed, Johnson takes the helm, expectations are that he would be willing to pull Britain out of the EU without a deal in place. FX players are already preparing for that eventually.

As reported at 10:31 (am) GMT, the GBP/USD was trading lower at $1.2449, down 0.2124%; the pair has ranged from $1.2418 to $1.2479 in today's session. The EUR/GBP was at 0.8979 Pence, 0.0356% and off the session trough of 0.89780 Pence.

Traders Await Election Fallout

While Johnson's win is a near given, what is drawing more focus is the number of resignations that are expected to be made. Two of the junior ministers in the current cabinet have already announced their intent and analysts believe many more will follow. Johnson will be hand picking his team, and those who don't resign are likely to find themselves sacked, analysts say.

Barbara Zigah

After working on Wall Street, Barb began her second career as a freelance writer at Daily Forex, where the CEO recognized fresh, untapped potential and was willing to give her a try. She’s never looked back. Since then, she’s worked steadily as a freelance writer and editor in the financial services and Forex-related industry.