If you want to know ‘will the Euro rise?’, you may like to learn that political uncertainty is once again damaging the Pound, as the UK currency loses more value against the Euro and other majors during Monday’s trading.
Fears that the Conservative party will elect Eurosceptic Boris Johnson as Prime Minister are weighing on the Pound and any prospect of a recovery. Since Theresa May resigned, the Pound has fallen more than 5% against the Euro, increasing the cost of buying €200,000 by nearly £9,000.
Boris Johnson is the clear favourite to lead the party, with over 100 Tory MP votes in each ballot. However, the decision is now in the hands of the Tory membership, which has around 160,000 members. The general consensus is that Boris has enough support to clinch the win. That said, I think this race could be closer than some think, with Jeremy Hunt keen to impress and Boris struggling to keep himself out of trouble.
Euro predictions: Boris in the headlines
This weekend, neighbours of Boris and his partner reported a heated disturbance at Boris’s flat and the police were called. It’s not clear what caused the disturbance, but unsurprisingly, Boris has been keen to play down the event, whilst other ABB (Anyone But Boris) followers are keen for Boris to provide an explanation.
Expectation had been for Sterling to start 2019 on the back foot as Brexit uncertainty remained the biggest challenge, but with a rebound once the UK struck a deal with Brussels. However, Brexit negotiations have stalled and it’s not clear exactly what Boris’s approach will be, assuming Boris wins the race. So the UK currency looks like it could be in for a rough ride.
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