The British Pound is falling. Since our last report on Friday at noon the chart shows a significant drop from 1.2658 to currently 1.2590. As we already reported, the Brexit hard-liner Boris Johnson is obviously uncatchable in the Tories’ search for a new prime minister. Probably only a closed election recommendation of all EU friends with the Tories could change theoretically still something at it. But there is little or nothing in sight at the moment. Quite the opposite. Health Minister Matt Hancock, who resigned from the race as prime minister, has assured Boris Johnson of his support. So Johnson’s chances of winning the election continue to rise.
And what’s the British Pound doing?
The following chart shows the British Pound vs USD since October 2018. The price now directly floats on the low of December and January. Another slide is possible, and then it can find further support at 1.2480.
The following chart shows British Pound vs USD since June 4th. We have overlaid it with the Euro vs USD exchange rate. This clearly shows that the British Pound and the Euro fell 100% in parallel against the US Dollar on Friday. So it wasn’t a pound weakness, but a dollar strength against many other currencies!
The Tories’ primary election begins on 22nd of June. A good month later they announce their results. But Boris Johnson’s chances of being elected are extremely high. And for lack of an alternative the time probably works for him. The pound keeps falling. But not because of the upcoming “Johnson horror” (our word creation), but because of the recently strong US dollar. As we already wrote several times in the last weeks and months. That the pound shows no own weakness is more than astonishing (no trade recommendation!) because Boris Johnson as Premier will most likely only worsen the Brexit chaos for the UK!