Following a string of mistakes that made his position unsustainable, Johnson has been under intense pressure to step down.
According to the most recent rumors, Boris Johnson will step down by the end of the day but continue serving as acting prime minister until a replacement is selected in the months ahead.
The assumption that the PM will have to quit in the next few days has been included in the price of GBP against a number of currencies in the market. Because of the strength of the US Dollar, the GBP/USD exchange rate is close to a new multi-month low. On July 6, the US dollar index (DXY) registered a brand-new 20-year record high.
Due to a slew of scandals and questionable actions, Boris Johnson’s status has come under intense criticism recently. When Prime Minister. Johnson was penalized for violating lockdown regulations, he became the first UK Prime Minister to receive a penalty while in power.
His conduct was also cited as a contributing factor in the Conservative Party’s dismal performance in the local elections this year. Due to claims that he had misrepresented the Parliament, a vote of confidence in Mr. Johnson was requested by MPs at the beginning of June. With 211 votes in favor and 148 votes against, Boris Johnson won the confidence vote by a narrower margin than anticipated.
Individual trader data reveals that 3.51:1 traders are net-long the GBP/USD currency pair, accounting for 77.84% of all trades. Although the number of traders who are net-long has increased by 0.54% from July 6 and by 10.68% from the week before, the number of traders who are net-short has increased by 8.11% and by 15.90% from July 6 and the week before, correspondingly.
The trading activity’s net-long position signals that the GBP/USD exchange rate may drop further. While the positioning is more net-long compared to the week before, it is still less than July 6.
