The British pound is under the pressure of political risks

British Prime Minister B. Johnson asked the Queen of Great Britain to suspend the work of Parliament in order to limit inaction by Brexit. This caused a wave of political fears regarding the current parliament and the likelihood of a vote of no confidence in the prime minister. But due to the fact that the suspension of parliament is expected in mid-September, the likelihood of a tough Brexit for the UK increases significantly, because the government will not be able to take appropriate measures.

Amid increasing political risk and the possibility of a tough Brexit, the British pound accelerated the decline across the market. GBP/USD fell to weekly lows, casting doubt on the upward trend in recent weeks. This may lead to a reversal of the upward trend for the pound.

Fig. GBP/USD chart. Current price – 1.2210

Read also: “Political risks are escalating around candidates
For the prime minister in the UK”

Hanzenko Anton

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