Johnson to resign later on Thursday source
Sterling climbs 0.5 vs dlr, 0.3 vs euro
Markets had priced in his departure already
Economic drivers far more important for pound

LONDON, July 7 Reuters Sterling enjoyed a small bounce on Thursday after reports that British Prime Minister Boris Johnson would shortlyresign, with traders welcoming the prospect of reduced political uncertainty.

The gains versus the dollar and the euro were measured, however, as a stream of ministerial resignations this week had made Johnson39;s departure almost a certainty and largely priced in by markets. UK assets have been notably calm as a collapse in support engulfed Johnson this week, with the deteriorating global economic backdrop viewed as far more important.

Against the dollar, the pound rose to 1.1994 by 0809 GMT, up 0.6 at the day39;s high, from 1.1938 , before news broke that Johnson would be resigning.

By 0915 GMT sterling was at 1.1968, holding firmer on the day. The pound had hit a March 2020 low of 1.1887 on Wednesday.

Versus the euro, sterling climbed to 85.11 pence, a threeweek high .

We can expect to see some relief being priced into the UK currency as more details of Johnsons plan to step down are announced. Financial markets prefer certainty, and this situation is no different, said Mike Owens, Global Sales Trader at Saxo Markets.

He pointing out, however, that the strong dollar had been a much bigger driver of the pound recently than the political uncertainty.

A…