Forex: British Pound drops on Conservative vote for leadership

During Wednesday’s trading session, the British Pound depreciated 46 pips or 0.36% against the US Dollar. Note, that the British Pound also depreciated against other major currencies.

The reason for the drop is concerns about the elections for the leader of the Conservative Party in the UK. Boris Johnson, the front-runner for this position, said that he wanted the UK to leave the EU bloc at the end of October even without a deal.

Political confusions and parliamentary disagreements put pressure on the British Pound, as investors became more cautious.