The famous British sense of humor has made its presence felt at a time of despair once again, with pictures circulating the internet of 10 Downing Street, the Prime Minister's residence, with a revolving door superimposed instead of its famous black wooden effort.
This symbolizes the unusually short periods in office held by premiers that are being perceived by the public in an ordinarily utterly stable country.
Since Liz Truss left office after just 44 days as Prime Minister following Boris Johnson's dishonorable exit from office, her only legacy being a disastrous budget which temporary chancellor Jeremy Hunt reversed, the continual downward movement of the British Pound against the Euro and US Dollar that has been evident for many months turned into volatility as a result of suspense and uncertainty.
Over the months which led to the end of Boris Johnson's premiership, the British economy tanked and the Pound devalued consistently, and suddenly dived further when Liz Truss took office.
When she left, Boris Johnson resurfaced, claiming that he was eligible to return to office, with 102 votes in favor of his re-appointment as Prime Minister.
Late last night, however, Mr. Johnson announced that he would not be returning to office.
This changing set of events has caused the British Pound to 'see-saw' in value, gaining as much as 0.9% to hit a high of $1.1401, before paring gains to be up about 0.4% at $1.134.
Britain's credit rating has been affected by the political misadventures that have led the country to economic crisis, and the apparent instability of the current government. Moody's, a respected global credit and referencing agency, has downgraded the UK's outlook from 'stable' to 'negative'.
Gilt and sterling markets were turbulent towards the end of last week as investors considered the leadership race, and whilst Mr. Johnson claimed he had 102 votes, opponents expressed their doubt that he had more than 50.
All the while, it is important to note that the UK has had a new head of state, King Charles, and an entire new government, and now potentially two new Prime Ministers, all having taken place without one single free vote being cast by the public.
With the Pound so volatile and the economy in disarray, the markets are responding appropriately - with caution - and therefore volatility is abound whenever yet another twist or turn takes place.
Trade global forex with the best ECN broker of 2021*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about making your money go further with FXOpen.
* FXOpen International, best ECN broker of 2021, according to the IAFT
