{"id":152010,"date":"2019-07-23T10:34:41","date_gmt":"2019-07-23T14:34:41","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=152010"},"modified":"2019-07-23T07:35:33","modified_gmt":"2019-07-23T11:35:33","slug":"boris-johnsons-clarity-will-set-direction-for-the-pound-the-markets-and-business","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/07\/boris-johnsons-clarity-will-set-direction-for-the-pound-the-markets-and-business\/","title":{"rendered":"Boris Johnson\u2019s clarity will set direction for the pound, the markets and business"},"content":{"rendered":"
July 23, 2019<\/div>
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By George Prior<\/strong><\/p>\n

The announcement of Boris Johnson becoming Britain\u2019s next Prime Minister is largely priced-in to the pound by the markets, affirms the CEO of one of the world\u2019s largest independent financial advisory organizations.<\/p>\n

Nigel Green, chief executive and founder of deVere Group, which has 12bn under advisement, comes ahead of the announcement of either Boris Johnson or Jeremy Hunt becoming the new Conservative leader and therefore Theresa May\u2019s successor as the UK\u2019s Prime Minister.<\/p>\n

Mr Green says: \u201cBoris Johnson has been the clear favourite in this leadership race since the beginning.<\/p>\n

\u201cAs such, the markets have been pricing-in the immediate impact on sterling of a Johnson administration.<\/p>\n

\u201cIt can be expected that there will be a knee-jerk reaction for the pound to the downside on the announcement that Boris Johnson has won the keys to Number 10.\u00a0 But as it is expected and priced-in, it will not drop too much further or for too long.\u201d<\/p>

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He continues: \u201cSterling is currently floundering due to the ongoing Brexit chaos and uncertainty which has put the brakes on the UK economy.<\/p>\n

\u201cThe pound\u2019s weakness has also been driven by fears regarding Mr Johnson\u2019s embrace of the possibility of a no-deal Brexit on 31 October, with many forecasting an economic shock for Britain if this were to occur.\u201d<\/p>\n

He goes on: \u201cHowever, there\u2019s also an argument to suggest that Mr Johnson\u2019s controversial \u2018do or die\u2019 approach \u2013 and a hard break – will at least end the years of failed negotiations which have fuelled endless uncertainty for business and the markets.<\/p>\n

\u201cA quicker and cleaner exit from the EU could indeed deliver an unexpected boost for the pound as international and domestic investors get the clarity they crave before stepping off the sidelines and investing into the UK.\u201d<\/p>\n

The deVere CEO concludes: \u201cSterling will suffer a dip on the confirmation that Mr Johnson is Prime Minister \u2013 but it will not be a major price shock and will not last long as markets have priced-in this scenario.<\/p>\n

\u201cThe surprise could be that a clarity of purpose of a Johnson administration on the overriding issue of the day \u2013 Brexit \u2013 could well give the pound a lift.<\/p>\n

\u201cThe importance of clarity for the markets and business should not be underrated. It now just remains to be seen if the former London Mayor and foreign secretary delivers on what he has said\u2013 or whether there will simply be more Boris bluster, which would sink the pound further and kill-off investment hopes.\u201d<\/p>\n

About:<\/strong><\/em><\/p>\n

deVere Group is one of the world\u2019s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients.\u00a0 It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.<\/p>\n","protected":false},"excerpt":{"rendered":"

By George Prior The announcement of Boris Johnson becoming Britain\u2019s next Prime Minister is largely priced-in to the pound by the markets, affirms the CEO of one of the world\u2019s largest independent financial advisory organizations. Nigel Green, chief executive and founder of deVere Group, which has 12bn under advisement, comes ahead of the announcement of […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-152010","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/152010","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=152010"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/152010\/revisions"}],"predecessor-version":[{"id":152011,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/152010\/revisions\/152011"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=152010"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=152010"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=152010"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}