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Johnson Is The New UK PM!

Published 23/07/2019, 12:27

It's official, Boris Johnson will become the next UK Prime Minister, much to the detriment of the pound, which has been repeatedly whacked at even the slightest whiff of a no-deal reality.

Johnson was a key figure in the leave campaign back in 2016 and has been much more convincing in his insistence that no-deal is better than a bad deal, than the incumbent Theresa May. Over the last month, that has led Johnson to claim that the UK, under his leadership, must leave on 31 October with or without a deal, which has naturally weighed further on the pound.

The initial response to the announcement has been rather subdued given the build-up to the event but then, it was so widely expected and heavily backed that it's perhaps no surprise. Johnson comfortably led from the outset and clearly appealed more to the Tory membership when it comes to Brexit which is why few people ever gave Hunt a chance.

The question now is whether the pound can recover from its slump in the near-term or whether the risk of no-deal is just too great and every passing week is seen to take us one week closer to the cliff-edge.

One thing is for sure, it's going to be a very interesting few months!

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