So far, so good. The pound hasn’t crashed and investors have not fled the country after Boris Johnson’s Midsummer Massacre.
Au contraire. Sterling is still rather enjoying its Boris bounce to hit a high for July and the FTSE 100 Index joined in on the ride.
While the prospect of Johnson becoming PM has been priced into the currency markets for several months, there were natural fears that sterling would fall when he finally made it to No 10.
Markets are cruel barometers of mood at the best of times. So it’s no surprise that the more cynical traders are loving the brutality of Johnson’s Cabinet clear-out and determination to present a serious Brexit team. To mark the massacre, the pound rose to E1.12.