The British pound rose slightly after Boris Johnson said he would resign as British Prime Minister on Thursday. It was a volatile trade during a period of great political turmoil in London.
The pound, which had already risen against the dollar that day, jumped at the news that Mr Johnson was preparing to resign. Shortly after Johnson officially announced his departure around noon, it traded 0.4 percent higher at $ 1.197. The pound was above the euro, which rose about 0.1% against the dollar.
The FTSE 100 is the UK stock market benchmark index, which also started with a rise that day, but initially fell into the news, but after Johnson’s resignation speech, it rose more than 1% and rose again. .. The Pan-European Stoxx600 index rose further, rising nearly 1.5%.
For UK financial markets, Johnson’s collapsing premiership casts a shadow over global trends such as high inflation, worsening energy security and worsening growth prospects.
Britain’s economic outlook is harsh and poses a major challenge for Johnson’s successor. Inflation is at its highest level in 40 years, and households have faced the worst pressures on income for generations. Companies are struggling to hire workers as Brexit and pandemics have reduced the available pool of workers. Workers went on strike to prepare Britain for the summer of labor insecurity as wages lag far behind inflation.
