The Pound Is Unhappy With Boris Johnson. Overview 24.07.2019

24.07.2019

The British pound this morning keeps declining in pair with the US dollar, the current quotation being 1.2432. Britain is getting a new Prime Minister today, the one able to rock the boat of the British policy and lead the country to rather doubtful perspectives. Theresa May, who spent several years struggling for mild Brexit, will serve her last day as the head of the British government this Wednesday and coordinate her resignation with the Queen. The pound is declining slightly in response, but it seems that there are tough times coming.

What should we know about Boris Johnson, the new Prime Minister? He is the former London mayor. He left the position of the head of Foreign Office in May’s government due to the lack of agreement on Brexit. July 23rd of the present year Johnson won the election for the leader of the Conservative party. This is the party in power, so Johnson will become Prime Minister this Wednesday, as soon as May steps down from office.

Johnson is a vocal opponent of multiple agreements on Brexit with the EU. He thinks that the tough scenario of Brexit, which implies exiting without an agreement on a transition period, should be regarded as basic, and the country just has to deal with it. Not necessarily the whole Tory party will support this policy, anyway, Johnson is an experienced diplomat able to bypass those in doubts. Again, not necessarily will Johnson come to an agreement with the EU; however, the EU itself already considers opening the door to the one who is quite able to enter through the window.

For sure we can only say that Britain got as an eccentric and ambiguous head of the Government as possible. Practically, he behaves like Donald Trump, though for now without Twitter and the White House behind his back. For the pound, the course for tough Brexit is a way down. This means that the downtrend of the pound/dollar channel, which emerged March 13th 2019, will at least strengthen and deepen.

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