Sterling stays weak for today and the week on UK political turmoil. GBP/USD dipped to as low as 1.3189 overnight in reaction to Boris Johnson’s resignation as Foreign Minister. But it somewhat recovered after initial selloff and is now back at around 1.3250. While the situation seems to be stabilized, the Pound is certainly not out of the woods yet. The coming few days, leading up to the publication of the new Brexit plan, will be crucial to Prime Minister Theresa May and the Pound.
For now, May’s position seems to be safe as Conservative Party chairman Brandon Lewis said he’s not expecting a confidence vote. High profile eurosceptic Jacob Rees-Mogg also said there is no call for May to resign. Robert Buckland, Solicitor General for England and Wales, was also quoted by Reuters saying that “the question of a leadership challenge, I think it’s out the window, gone.” The development helped stabilized Sterling.
Meanwhile, former Health secretary, a member of the Remain camp, was appointed as Foreign Minister to replace Johnson.
