Trading at around $1.23, the Pound is holding on to yesterday’s losses. Information, allegedly leaked from the British Prime Minister’s office, points at the realization within Boris Johnson’s camp that the current negotiations with the EU will break down and there will be a new delay to the exit date, which will be preceded by a new election According to these reports, the Conservative Party’s election campaign strategy will be based around promising a swift exit from the EU.
It is therefore no surprise that the Pound is not moving much as after more than three years, there’s still no clarity on what the outcome for the Brexit process will be. Only a new parliamentary election, perhaps even a referendum, will be able to untie the Brexit knot. Until then Sterling is likely to remain within the current range.
