The Sterling pound today traded near yesterday’s lows as the media criticised Prime Minister Boris Johnson for skipping a crucial debate on the climate crisis. The GBP/USD currency pair fell as investors sold the pound following Johnson’s recent moves that could see his popularity decline ahead of the December elections.
The GBP/USD currency pair today fell from a high of 1.2923 in the late Asian session to a low of 1.2901 and was headed lower at the time of writing.
The currency pair attempted to rally higher in the Asian session but quickly fell as the London session approached. Investor sentiment towards the pound was subdued as British papers reported that Johnson was unapologetic for missing the climate debate. The Prime Minister appeared smug after the latest YouGov poll showed that the Conservative Party had a significant lead over the opposition. However, the situation could change as Jeremy Corbyn the Labour Party leader accuses Johnson of selling the National Health Service to the United States citing leaked government papers. Investors are worried that Johnson could suffer the same fate as Theresa May whose popularity diminished just before the last election.
The release of the disappointing UK mortgage approvals and money supply report for October by the Bank of England drove the pair lower. The strong greenback as tracked by the US Dollar Index also contributed to the pair’s decline.
The cable’s future performance is likely to be affected by British political headlines and other geopolitical events.
The GBP/USD currency pair was trading at 1.2892 as at 10:18 GMT having fallen from a high of 1.2923. The GBP/JPY currency pair was trading at 141.23 having dropped from a high of 141.49.
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