Brexit Fears Continue to Pressure Sterling

The Great Britain pound declined today as Brexit fears continued to weigh on the currency. The losses were limited, though, and the sterling has managed to eliminate them against some rivals.
Today, Britain’s Conservative party will hold the second round of elections to choose its new leader. The contender with the lowest number of votes as well as any candidate with less than 33 votes will leave the race. The results are expected to be announced at 18:00 today.
Speculators bet on the victory of hard Brexiteer Boris Johnson. Market consider his victory to increase chances for disorderly Brexit. While Johnson said he does not want a hard Brexit, he also stated that Britain will leave the European Union regardless whether a trade deal is achieved or not.
GBP/USD slipped from 1.2533 to 1.2522 as of 11:21 GMT today. GBP/CHF was down from 1.2520 to 1.2511, and its daily low of 1.2483 was the lowest since January 11. At the same time, EUR/GBP declined from 0.8948 to 0.8941.

If you have any questions, comments, or opinions regarding the Great Britain Pound, feel free to post them using the commentary form below.

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