close menu

How Boris Johnson’s election has caused trouble for the Pound

by Sable International | Jul 31, 2019
  • The Pound has fallen to a 24-month low against the Euro and a 28-month low against the Dollar. Discover how the recent UK cabinet shuffle contributed to the currency's volatility.
    Boris Johnson portrait

    Article provided by Dean Reich, Forex Broker at Sable International. Contact him at dean.reich@sableinternational.com or call +44 (0) 20 7759 7554 or +27 (0) 21 657 1556

    Since Boris Johnson’s appointment, the Pound has hit a 24-month low against the Euro, chiming in at 1.08871 earlier this week. This marks an unprecedented 12-week consecutive losing streak against the Euro. It’s not just the Euro that is taking advantage of the political noise happening in the UK at the moment – the Greenback has gained 2.5% on the Pound in the last week alone. This sees the GBP drop to a 28-month low (1.21256) against what seems to be a strong Dollar.

    The Pound’s weakness comes largely from the cabinet shuffle that saw Boris Johnson replace Theresa May in the prime minister role. On Johnson’s first day as the UK prime minister, he created a cabinet of like-minded Brexiters. The day Johnson took the helm, 18 ministers were axed from Theresa May’s cabinet and just six remain in their former position.

    The EU and the UK continue to clash over renegotiating the current Brexit deal. Analysts believe that another general election will be needed for matters to progress. A recent phone call between Johnson and the European Commission President, Jean-Claude Juncker, about the chances of a new Brexit deal did not end well. Juncker slapped away these ideas, stating that the current deal is the best and only deal that the UK will receive.

    Up next for the UK

    No one really knows the final outcome of this ordeal. It has been almost three years since the UK voted to leave the EU. Since that vote, two dates have come and gone as to when the UK should have left. We will be waiting to see what happens when the next one comes up at the end of October.


    To protect yourself from exchange rate risk, get in touch with our team at forex@sableinternational.com or call +27 (0) 21 657 2153. We provide personalised forex solutions for private and business clients.

    We are a professional services company that specialises in cross-border financial and immigration advice and solutions.

    Our teams in the UK, South Africa and Australia can ensure that when you decide to move overseas, invest offshore or expand your business internationally, you’ll do so with the backing of experienced local experts.

    • Cross-border payments
      How to make cross-border business payments and collections simpler, cheaper and faster
      Aug 23, 2019  |  by Calvin Matsaure
    • Arrow and man sliding down
      Why the Rand is tanking
      Jun 10, 2019  |  by Sable International
    • Currency Solved
      Introducing a better way to pay and get paid: Currency Solved
      May 17, 2019  |  by Anton Van Teylingen
    • forex partner program
      Earn passive income with our Partner Programme
      May 09, 2019  |  by Anton Van Teylingen
    • Businessman-balancing
      Brexit: How to protect against currency fluctuations
      Mar 13, 2019  |  by Anton Van Teylingen
    • Rand-pound-sterling
      Britain - a good time to invest? Make use of your 2018 investment allowance
      Nov 14, 2018  |  by Andrew Rissik
    • trust-handshake
      But, do you know your forex broker’s name?
      Oct 10, 2018  |  by Saskia Johnston
    • risk-ahead-sign
      Increase your business’s bottom line with currency hedging
      Jun 06, 2018  |  by Calvin Matsaure
    • dollar-euro-birdcage
      Is your forex broker saving or costing you money?
      May 15, 2018  |  by Tim Smith
    • international-money-transfers-globe
      How to choose the right forex partner for your business
      Dec 11, 2017  |  by Saskia Johnston
     
     

    South Africa

    Cape Town

    Regent Square
    Doncaster Road
    Kenilworth 7708 +27 (0) 21 657 2120

    Durban

    25 Richefond Circle
    Ridgeside
    Umhlanga 4320 +27 (0) 31 536 8844

    United Kingdom

    Croydon

    One Croydon
    12-16 Addiscombe Road
    Croydon CR0 0XT +44 (0) 20 7759 7514

    Australia

    Melbourne

    9 Yarra Street
    South Yarra
    VIC 3141 +613 (0) 8651 4500

    Sable International is a trading name of 1st Contact Money Limited (company number 07070528), registered in England and Wales. We are authorised and regulated by the Financial Conduct Authority in the UK (FCA no. 517570), the Financial Services Conduct Authority in South Africa (1st Contact Money [PTY] Ltd - FSP no. 41900) and hold an Australian Financial Services Licence issued by ASIC to deal in foreign exchange (1st Contact Group - AFS Licence number 335 126).

    We use cookies to provide the best website experience for you. Using this website means that you agree to this. How we use cookies.