After several days of losses the Pound Sterling finally saw a reprieve against the greenback and Euro during Wednesday trade in London. With the election of the Prime Minister to replace Theresa May finally over, market players are eager to hear what Boris Johnson will have to say later today. First, the formalities must be attended to, with the Queen formally announcing his appointment, followed by his acceptance speech. His position that the Brexit departure date will be adhered to with or without an agreement in place is weighing heavily on Sterling.
As reported at 10:42 am (GMT) in London, the GBP/USD was trading at $1.2481, up 0.3328% and moving off the session peak of $1.2487 while the low was recorded at $1.2427. The EUR/GBP was lower at 0.8927 Pence, down 0.405%, with the pair ranging from a trough of 0.89220 Pence to a high of 0.89681 Pence.
Outlook Not as Bleak says Analysts
Analysts say that what will be of the greatest interest to markets is Johnson's appointments to the key cabinet posts. Also, his plans to deliver a Brexit by the October deadline will now be carefully scrutinized. Despite the concerns of market players, analysts believe there is less than a 50% likelihood of a no-Brexit outcome and believe that Sterling will slow begin to reverse trend when markets accept that possibility.