The British pound fell in value for the third day in a row pending the appointment of the new UK Prime Minister. Investors expect Boris Johnson to win the battle and fear the consequences for the British economy because of his hard line towards the Brexit. The pound fell to the lowest level in more than two years against the dollar.

The members of the British Conservative party had until Monday to vote on the new party leader. They will announce the outcome on Tuesday. The fight is between Boris Johnson and Foreign Minister Jeremy Hunt. The new party leader of the ruling Conservatives automatically becomes the prime minister of the United Kingdom.

Investors think that the chance of a no-deal brexit will increase if Johnson indeed becomes the new prime minister. Michael Saunders, a policymaker at the British central bank, also foresees a much smaller chance for well-organized brexit if Johnson comes to power.

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