A stack of one pound sterling coins sit in front of a British Union flag, also known as a Union Jack, in this arranged photograph in London, U.K., on Wednesday, Oct. 14, 2020. Pound traders are remarkably nonchalant even as U.K. Prime Minister Boris Johnson's self-imposed deadline of Oct. 15 to get a trade deal with the European Union looms large. Photographer: Hollie Adams/Bloomberg
Locked
UK can’t shake Pound negativity after weeks of political chaos
The pound rose as much as 0.9% after Boris Johnson pulled out of the leadership race, leaving Rishi Sunak on the brink of becoming the next PM.
By Alice Gledhill
(Bloomberg) — Prime Minister Liz Truss is on her way out, just as markets wanted. But the huge economic and fiscal headwinds ahead spell further pain for the pound regardless of who wins the contest to become the UK's next leader.
Investors distracted by the political circus engulfing the nation may start turning back to the economy's woeful outlook: inflation at a 40-year high, soaring interest rates, depressed consumer sentiment and a potential return to austerity.
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