Currency Corner: what does Boris Johnson mean for sterling?

Boris Johnson is in at No 10 and he's made himself feel at home with a round of sackings. Dominic Frisby looks at how the currency markets have reacted, and what lies in store for the pound.

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Can Boris Johnson deliver on his promises?
(Image credit: 2019 Getty Images)

Hello and welcome to this week's Currency Corner. So we have a new prime minister. What does it all mean for sterling? At the cabinet level, Boris has had what you might term "a right clear out" with virtually all of Theresa May's big guns either sacked or resigning. The result is, effectively, a new administration, albeit one with a tenuous working majority in parliament. It seems this cabinet has been selected not so much as to fight a general election, but with a general election in mind. If needs be, in terms of dealing with the looming threat of the Brexit Party, this is an administration that is equipped to take it on. Any recalcitrant Remainers in Leave-voting seats who might be thinking of causing trouble will be conscious that this administration is prepared to fight an election if it must, and that their recalcitrance may mean them losing their seat.

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Dominic Frisby

Dominic Frisby (“mercurially witty” – the Spectator) is as far as we know the world’s only financial writer and comedian. He is the author of the popular newsletter the Flying Frisby and is MoneyWeek’s main commentator on gold, commodities, currencies and cryptocurrencies. He has also taken several of his shows to the Edinburgh Festival Fringe.

His books are Daylight Robbery - How Tax Changed our Past and Will Shape our Future; Bitcoin: the Future of Money? and Life After the State - Why We Don't Need Government

Dominic was educated at St Paul's School, Manchester University and the Webber-Douglas Academy Of Dramatic Art. You can follow him on X @dominicfrisby