Possibility of Boris Johnson resignation could boost pound, strategists say

Currency traders are starting to factor in a new trigger for the rally in the British pound: the possibility that Boris Johnson will step down.

British one pound coins sit on a portrait of JMW Turner on a twenty pound note in Danbury, U.K., on March 23, 2020. Foto: Bloomberg photo by Chris Ratcliffe

Far from the eroding the gains that have made sterling one of the top performers versus the dollar this month, the prospect of the prime minister's resignation could give the currency a further lift, according to some strategists.

That comes against the backdrop of broadly improving sentiment on the pound as traders set their sights on a Bank of England tightening cycle and a potential shift to the endemic stage of Covid-19...

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