The pound travels towards the semi-annual lows against the euro

The pound approached the low of the last 6 months against the euro yesterday, falling to 1.1141, in the wake of news related to Brexit, which sees former foreign minister Boris Johnson increasingly accredited to the succession of Theresa May as leader of the conservative party. An eventuality that traders do not like, especially due to the well-known positions of Johnson’s brexiteers, which has repeatedly hinted at how it could accept, in the absence of an agreement shared with the EU, favorable in any case to the United Kingdom, also a no Brexit deal. A scenario that analysts envision as extremely adverse to the British economy and the pound but which sees US president Donald Trump as the main supporter.

Even the governor of the Bank of England, Mark Carney, has once again stressed the risks of a no-deal Brexit, stating in front of members of the Westminster parliament that the central bank could be forced to undertake new measures, in the case of a Brexit of this type. Previously, however, Carney had also stated that the BOE is ready to raise interest rates in the event of a “smooth” Brexit. Statement that had immediately helped the GBPEUR to rise by about 40 pips. However, the ascent was only temporary. Immediately afterwards, in fact, the pound went down again towards the opening value of 1.1160. With a decidedly downside-oriented market mood, it is possible that in the next few hours the pound will fall to below half-yearly lows.