The victory of Boris Johnson in the U.K.’s Conservative Party leadership contest is only the latest geopolitical event sparking concerns among analysts over foreign exchange (FX) markets — and corporates’ ability to react to those changes.
With Johnson named as new Prime Minister, analysts are again shifting their focus on the execution of Brexit and how FX markets will be impacted.
“With such an outcome having been largely expected, sterling’s immediate reaction has been muted as the news was already priced in,” reflected Caxton FX currency expert Michael Brown in an interview with Express.co.uk following news of Johnson’s victory. “However, 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.”