30 July 2019 : The past few days have offered investors a bitter appetizer on what to expect in the months ahead after Boris Johnson became the new UK Prime Minister.

A severely depressed and unloved British Pound, disagreements with Brussels and chronic uncertainty over Brexit are positioned to be key themes shrouding the UK economy this quarter. Intensifying fears of a no-deal Brexit under Johnson’s leadership are already being reflected in Sterling which is weakening against every single G10 currency today.

Michael Gove’s comments over the weekend on how the government is “operating on the assumption” that the UK will leave the European Union has certainly not helped matters for the battered Pound. With uncertainty over Brexit set to mount ahead of the October 31 deadline, the Pound is fundamentally bearish.

The GBPUSD has already tumbled to a fresh 28 month low below 1.2150 this morning, and has scope to test 1.2000 if a solid daily close below 1.2100 is achieved.

Reporting for EasyKobo on Tuesday , 30 July 2019 in Lagos, Nigeria

Source: Lukman Otunuga, Senior Research Analyst at FXTM