What Happened to Sterling After Boris Johnson's Resignation?

With the resignation of UK Prime Minister Boris Johnson, eyes turned to sterling. After the last meeting of the US Federal Reserve (FED), the issue of a 75 basis point interest rate hike in July gained strength. While the dollar rose in global markets, the euro fell below 1.02 against the dollar, lagging behind the European Central Bank.

The resignations from the UK government this week were effective in the decline of the pound sterling, the currency used in the UK, with dollar pressure. GBP/USD fell below 1.19 this week and recorded the lowest level after March 2020. Following the resignation of the health and finance ministers, British Prime Minister Boris Johnson was also expected to resign. News in the previous time zone announced Johnson's resignation a few hours later. Just before the resignation, the pair recovered towards 1.20 while EUR/GBP fell to 0.85. Sterling is also up nearly 1% against TRY, with GBP/TRY rising to 20.74 today, erasing the last two weeks of losses. As of today, sterling has lost 11.5% against the dollar since the beginning of the year. Against the euro, sterling, which is trading at a 1.3% premium on an annual basis due to the weakness in the euro, has risen 15% against TRY this year. After the resignation news, the British stock market is also on a buying trend. In London, the FTSE 100 index gained 75 points with an increase of more than 1 percent and is testing the 7,200 level.

---

You may also be interested in this: Resignation Decision by British Prime Minister Boris Johnson British Prime Minister Boris Johnson announced his resignation as the leader of his party. He noted that he will continue to work until he takes over as Prime Minister. Announcing his decision to resign in front of the Prime Minister's Office Number 10, Boris Johnson stated that he will leave the leadership of his party. "The will of the Conservative Party in Parliament is clear that the party needs a new leader and therefore a new prime minister," Johnson said. https://ieconomy.io/ingiltere-basbakani-boris-johnsondan-istifa-karari/