Boris Johnson falters, the GBP no. This is how we can summarize the picture of these turbulent days across the Channel, after the official apology that the premier addressed to the Westminster deputies for attending a party during the first British lockdown in May 2020. A commotion that however does not seem to affect the rapid growth of the English currency in these first days of 2022. To analyze the case is a study by Bloomberg.
An apology from Johnson may not be enough to appease controversy both from his party and from Labor rivals, therefore, the hypothesis of resignation. An eventuality that according to experts could accelerate even more growth from the GBPinstead of hindering it in some way.
The analysts in fact they look much more carefully at what the Bank of England, which could apply the first series of increases this year taxi since 2017. The British currency, in this wake, has been at its highest since last October. And, as anticipated, it does not allow itself to be affected by the events of Downing Street. On the contrary, he seems to be cheering for the transition to a stronger and more stable leadership, to increase the laps of his race.
Therefore, the situation it is all in the making. The departure of BoJo it is not absolutely certain to date. Even according to ING analysts, the pound would not be affected by a possible change of leadership: the British currency appears immune to political rumors and from an investment perspective, the Brexit negotiations seem to represent a much greater risk factor for this asset. All the more reason to keep following developments from London closely.