Boris Johnson, the new Prime Minster of Britain, has reiterated his long held stance that he is willing to withdraw from the EU even if no agreement has been reached. As a result, the Pound Sterling remains under pressure and is trading at below the $1.25 level against the greenback. Markets had already taken a Johnson victory into account, however, and analysts say that the outlook for Sterling will continue to be bearish until after the Brexit deadline in October.
As reported at 10:37 am (GMT) in London, the GBP/USD was trading at $1.2477, a loss of 0.0433% and off the earlier low of $1.2465. the EUR/GBP is also lower at 0.8917 Pence, down 0.0896%; the pair has ranged from a trough of 0.89120 Pence to a high of 0.89290 Pence.
ECB in Focus
Markets' attention will turn toi the European Central Bank later today as they announce their latest policy decision. While the r4ecent poll of economists is predicting that the current benchmark rates will remain at existing levels, what Mario Draghi will say at his press conference is of paramount importance. Many analysts expect Draghi to begin laying the foundation for a rate cut before his November departure, especially given the stagnant growth in the European Union. Concerns over inflation and the ongoing global trade rift will likely also be mentioned in his speech.