GBP Falls After Johnson Resignation

July 9, 2018 Share Print 0

Sterling slid on Monday after the resignation of the British foreign minister heaped pressure on Prime Minister Theresa May, but its losses were expected to be contained unless a full-blown leadership challenge materialized.

Boris Johnson followed Brexit minister David Davis in resigning in opposition to May’s hard-fought blueprint for how Britain is to structure its relationship with the European Union after its leaves the bloc in March.

That plan – announced on Friday – has been welcomed by markets, which believe it made the “soft Brexit” favored by businesses and investors more likely.

Sterling had traded higher before Johnson’s resignation as investors speculated May would find it easier to negotiate with Brussels without opponents to her vision of Brexit inside her cabinet.

via Reuters

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.