Boris Johnson is set to resign today, based on a well trusted media sources, triggering a new competition for leadership. Boris Johnson has been under continuous pressure to resign, following a numerous of miscalculations left his position unjustified.
The news these past hours is that Boris Johnson will resign today but will stay as caretaker Prime Minister until the new leader is expected to be chosen this summer.
Sterling hasn’t changed as much as other currencies with the assumption that the prime minister would have to leave in the following days already priced in. GBP/USD is close to a multi-month bearish , mostly by the bullish of the US dollar. The US dollar reached a fresh 20-year high on Wednesday.
During the months that passed, Boris Johnson’s position was affected due to various mistakes and scandals. PM Johnson was the first UK PM to be penalized, while he took a fine for not having respected the lockdown measures. These actions were justified by the lack of Conservative’s presence at the local elections in 2022. This June, there was a confidence vote called by the MPs over proclamation over Johnson deceiving Parliament, but Boris Johnson won the confidence vote with 211 votes and had only 148 votes against. After the news of Johnson’s expected resign, this morning the paund lifted higher. Investors are waiting for this news to affect positively on the UK assets while sterling and stock markets are getting stronger.