British Pound Latest – UK PM Boris Johnson is Set to Resign, GBP Unfazed

[MongiIG]

Jul 7, 2022 | DailyFX
Nick Cawley, Strategist

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• Boris Johnson expected to hand in his notice after a swathe of Tory MPs resign
• PM Johnson has led the UK government since July 2019.

Boris Johnson is expected to hand in his resignation today, according to a raft of well placed media sources, sparking a new leadership contest. Johnson has been under extreme pressure to quit after a series of gaffes left his position untenable.

The latest talk is that Boris Johnson will resign later today but will stay on as caretaker Prime Minister until a new leader is chosen in the Summer.

Sterling is little changed against a range of currencies with expectations that the PM would have to resign in the coming days already priced in. GBP/USD is near a fresh multi-month low, due mainly to the strength of the US dollar. The US dollar basket (DXY) printed a fresh 20-year high on Wednesday.

 

What is your view on the British Pound – bullish or bearish?