The political division in Britain increased, and the Brexit parties’ skirmishes appeared, along with the economic suffering from the consequences of the Russian-Ukrainian war. There is also a continuing pessimistic view of the Bank of England and expectations of recession, in addition to the continuation of the US Federal Reserve’s direction for more interest rate hikes. All combined factors contributed to the continuation of the sharp downward trend for the pound gainst the dollar, GBP/USD, with recent losses pushed it towards the 1.1875 support level, the lowest for the currency pair since March 2020. The pound continued to collapse, as speculation spread about the future of British Prime Minister Boris Johnson amid a wave of moving away from top positions in the government and the party’s confidence in his leadership waning. Sterling began to tumble in the wake of news of the dismissal of Prime Minister Michael Gove. However, it is still above the day’s lows, after earlier in the session dropping to as low as $1.1876, a level last seen amid the pandemic turmoil in early 2020.
