Did Boris Johnson just cause the FX market to move?

The pound is on the way up once again, moving sharply this afternoon as Boris Johnson declares that he is out of the leadership race.

Charismatic political leader Boris Johnson has today declared that he will not be standing for election to lead the incumbent Conservative Party, a post to which if he was successfully elected would place him as Prime Minister.

Mr. Johnson has bowed out of the leadership race, having been the second most likely to be elected with 27% of Conservatives having demonstrated that they would like to see Mr. Johnson as leader, second only to Theresa May at 36%.

With Mr. Johnson, who holds a pro-Brexit stance, having called it a day, Theresa May and Michael Gove look toward campaigning for leadership, with Michael Gove, very much an advocate for an independent Britain, being regarded as a potential future Prime Minister.

Today, the FTSE 100 and FTSE 250 have both rebounded from the downturn that they experienced during the EU referendum period, and in keeping with FinanceFeeds predictions, investment confidence in the United Kingdom is now at very high levels post-Brexit referendum.

The British pound had been stable today, up 0.2% during the course of the morning to $1.3253 in the advent of an announcement from Bank of England Governor Mark Carney this afternoon.

A mini-bounce may be in the midst as the pound increased in value by 0.6 cents against the US dollar after a sustained upward direction since the referendum result was announced.

HSBC interbank FX Analyst Daragh Maher explained today “Sterling will take the positive out of this, which is we now have a Conservative Party that will not be splitting at the seams.”

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