Sterling likely to rise, not fall, should Johnson resign

"Currencies tend to like strong leaders," said Jane Foley, the head of foreign-exchange strategy at Rabobank in London.

Boris Johnson is facing calls to resign, both from within his own Conservative Party and among opponents.

Currency traders are starting to factor in a new trigger for the rally in the British pound— the possibility that Boris Johnson will step down.

Far from eroding the gains that have made sterling one of the top performers against the dollar this month, the prospect of the British prime minister’s resignation could give the currency a further lift.