The pound jumped by over 1% against the euro and by over 0.5% against the dollar yesterday after Boris Johnson announced that he will resign as prime minister. This morning, sterling has weakened slightly against the dollar.
Johnson agreed to stand down following the resignation of more than 50 Conservative MPs over the past few days but said it was “painful” to leave his position as Tory leader and blamed “herd instinct”.
Sterling also climbed against the dollar after hawkish comments from Bank of England policymaker Catherine Mann about speeding up interest rate hikes. She noted that the Bank is seeing very high inflation expectations over the next year.
