It can be assumed that Prime Minister Johnson will remain at the receiving end of criticism. However, the FX market is focussing on other matters at the moment. Economists at Commerzbank expect the sterling to remain under pressure as the Bank of England (BoE) is set to disappoint markets next week.

Political developments do not matter much for GBP

“The Prime Minister will probably continue to cause negative headlines. Short-term reactions to the FX market are possible, but principally political developments are likely to remain aside with monetary policy constituting the main driver for sterling exchange rates.” 

“We see the risk that the market’s interest rate expectations, which rose again recently, will be disappointed and that sterling will come under depreciation pressure. However, we are unlikely to gain any additional insight before 16th June.”