The pound continues to show weakness this morning as Conservative MPs prepare for the next round of votes today. In the ballot yesterday, Boris Johnson was once again ahead of the pack with 126 votes. Dominic Raab secured just 30 votes so was eliminated from the race. The surprise of the day came from Rory Stewart, who nearly doubled his backing with 37 votes.
During a televised BBC debate yesterday evening, the five remaining candidates clashed over the Brexit deadline date. Edging away from his ‘leave at any cost’ stance, Johnson said that the 31st of October was an “eminently feasible” date, whilst Michael Gove and Jeremy Hunt said that more time might be needed.
The pound reached its lowest level since mid-January yesterday, as it became increasingly clear that Boris Johnson is the favourite to win the Conservative leadership contest. The pound reacted negatively to this due the fact that no-deal is looking likely.
Another factor for sterling to contend with today is the release of inflation figures this morning, which are expected to fall from April’s reading.
