Sterling is up against both the pound and the euro this morning. This is possibly due to another comment from Boris Johnson, in which he has said that the odds of a no-deal Brexit are a “million-to-one against” and “vanishingly small.” This seems to contradict with his “do or die” remark yesterday, which suggested that we’ll leave the EU on the 31st of October with or without a deal.
For the next few weeks, the pound could remain very much susceptible to the developments of the leadership contest, causing volatility.
The pound was still in a low position yesterday following the Bank of England Governor, Mark Carney, speaking in Parliament. Carney and other top officials spoke about the BoE’s inflation report, which was published in May. Carney cited concerns over a no-deal Brexit, saying that fears are damaging the economy. He also said that if a no-deal were to happen, interest rates would be lower.
