THE pound has jumped against the euro as Boris Johnson has today been confirmed as the next Prime Minister. Sterling hovered around 1.1132 this morning before falling down to 1107. But it has since rebounded to 1.1141. This means £1 would get you €1.1141. The pound is still low compared to its pre-EU referendum levels […]
THE pound has jumped against the euro as Boris Johnson has today been confirmed as the next Prime Minister.
Sterling hovered around 1.1132 this morning before falling down to 1107.
But it has since rebounded to 1.1141. This means £1 would get you €1.1141.
The pound is still low compared to its pre-EU referendum levels in 2016. Back then, £1 would get you €1.4271.
But Michael Brown, senior analyst at currency firm Caxton FX, says the rise is muted – and he expects more uncertainty to follow.
He said: “With such an outcome having been largely expected, sterling’s immediate reaction has been muted as the news was already priced in.
“But focus will quickly switch to the next steps – namely, cabinet appointments and the Brexit plan.
“The latter will be of more importance for markets, with sterling set to remain under pressure should Boris continue his ‘do or die’ Halloween Brexit stance.”
In comparison the dollar has been slower to recover. This morning £1 would get you $1.248.
It later fell to $1.242 but at the time of writing its back up to $1.246.
But again, the dollar is still down compared to its pre-referendum level of $1.588.
More to follow…
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