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What could the appointment of Boris Johnson as PM mean for the Pound?


Guest Sam Bouman

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Firstly with this question I believe we have to look at Johnson’s Brexit stance as this will be key to any pound strength or weakness going forward and at the moment we can see that the Bank of Englands hands are  tied when it comes down to monetary policy because of the Brexit situation.

So Boris Johnson was a strong Brexiteer who campaigned for leave, he has reiterated that the UK must leave Europe on the 31st of October with or without a deal which instantly means that this will provide some worries for pound investors as a no deal Brexit will mean a major hit to the UK economy initially before there is any chance of stabilisation.

If Mr Johnson were able to go back to the EU and negotiate I believe this would be seen as very pound positive as it would mean the EU has changed their stance on renegotiation which they have continued to say will not be allowed, they would then be negotiating with someone who is seen as a stronger negotiator than PM May.

So in conclusion I believe that it all depends on the EU’s stance towards Johnson but looking at the current circumstances it seems that Johnson’s appointment will be negative for the GBP.

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