Futures File: British pound in royal trouble
The United Kingdom has selected a new leader, and financial markets are sour on the choice.
Boris Johnson, former mayor of London, was chosen to replace Theresa May as British prime minister on July 22. He has been a leading proponent of the British exit from the European Union, and his rise to power increases the chance of a “hard Brexit,” whereby the UK leaves the EU without a plan in place.
In his first week in power, Johnson reiterated that Brexit must happen by Oct. 31, whether or not a deal has been cut with the EU, which could leave Britain financially isolated.
Market watchers expect that a hard Brexit could cause a recession and further erosion in the value of the pound. Rising fears of economic catastrophe have caused the British pound to fall to a two-year low, trading Friday near $1.24.
Read more: https://www.nwitimes.com/business/columnists/walt-breitinger/futures-file-british-pound-in-royal-trouble/article_9eeedd74-b280-56e4-8de4-67a3343dafd2.html
(Northwest Indiana Times)
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