Tory MPs raise risk of 'Big Dog' biting pound again
Oct 10 (Reuters) - A perplexing leadership vote from Tory lawmakers on Wednesday has raised the risk of "Big Dog" Boris Johnson one day returning to lead the Conservatives - a possibility which might give GBP longs nightmares.
Wednesday's vote saw the favourite James Cleverly unexpectedly eliminated from the contest to succeed former Prime Minister Rishi Sunak.
Tory Party members must now choose between Kemi Badenoch and Robert Jenrick to be UK opposition leader, with the victor to be announced on Nov. 2.
The Conservatives are a lot more hopeful of returning to power at the next general election, expected in 2029, than they were in July, courtesy of a bumpy start for the new Labour government led by PM Keir Starmer.
However, if Badenoch or Jenrick fail to generate upward momentum for the Tories in opinion polls, it might soon lead to calls for their replacement - with Johnson among likely names-in-the-frame should that come to pass.
Johnson's February 2016 decision to back Brexit negatively impacted sterling, before the currency was torpedoed by Britain's June 2016 vote to leave the European Union.
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(Robert Howard is a Reuters market analyst. The views expressed are his own)
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