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Johnson's win did not prevent the growth of the pound

Johnson's win did not prevent the growth of the pound

Erik Holm - Head of media

The pound showed a steady decline, but by noon the mood of market participants has changed dramatically, while even weak data from the Confederation of British manufacturers did not prevent its improvement. The pound continued to be even more enthusiastic after the news that Boris Johnson won the race for the post of British Prime Minister. Veterans of the market associate such a reaction with the implementation of the strategy "sell on rumors, buy on facts" – the victory of the ardent supporter of Brexit at any price was expected and taken into account in prices.

Soon, recovery may continue, but the extent of the improvement in the dynamics of the pound will depend on whether Johnson's harsh rhetoric was only a pre-election stunt and he will take a more cautious and balanced position in dealing with British parliamentarians and EU negotiators. For the new head of the British government, it is extremely important to overcome the disunity of members of the conservative party – otherwise, he may initiate early general elections.

Johnson’s victory in the inner-party elections was more than convincing: he scored 92,153 votes against 46,656 from Jeremy Hunt.