The British pound depreciates against the euro for more than 6 weeks

This period prolongs the growing likelihood of Boris Johnson becoming the next Prime Minister of Great Britain.

Well-known for his approach to the EU, Boris Johnson is one of the main supporters of the so-called hard Brexit. Therefore, if it fails to reach an acceptable agreement on the withdrawal of Great Britain, it advocates resolving the exit without agreement.

The deadline for the UK to withdraw, with or without the agreement, was 31 October. But only if he becomes a minister and finds sufficient political support for such a vigorous step. Markets are responding to Johnson’s growing popularity with a distrust of the pound. Earlier this week, the pound fell 0.1% against the euro to 89.10 pence per euro. ING economists warn that the pound can weaken to 95 pence per euro by the end of autumn.


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