Following the election of Boris Johnson as Prime Minister of the United Kingdom, the sterling is seen posting losses. This came amid reports of most of the cabinet members in Johnson’s administration being euro-skeptics. While the new administration wanted to negotiate a new Brexit deal, EU officials ruled out further talks. The British PM, however, said that the UK was committed to leaving the EU on October 31st.
GBPUSD at Risk of Falling to 1.20
The currency pair has been extending strong losses with Brexit now dominating the headlines once again. With price breaking below the initial support at 1.2426, the sterling remains dovish. However, the scope of the declines could be limited given the upcoming Fed meeting this week as well as the Bank of England’s monetary policy meeting.
