Daily Currency Update

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PM elect Johnson comes under pressure

GBP - British Pound

Boris Johnson came under pressure over the weekend as details around his private life have already begun to erode the lead he holds over PM rival Jeremy Hunt. A new leader is set to be announced in just under four weeks which will be excruciatingly long for the Johnson as he looks to hold off Hunt which could show that upsets of all sorts are possible.

Last week the Bank of England pulled it's usual rabbit out of the hat by keeping interest rates on hold whilst also downgrading its forecasts for the UK economy over the next few weeks. The rhetoric from the Bank of England was also littered, as per usual, about warnings over Brexit uncertainty and heightened global tensions. In 2016, Mark Carney was dragged into the Brexit debate offering an 'expert' opinion on Brexit which was often maligned and he's already dismissed comments from Boris Johnson around tariffs and a no-deal Brexit.

GBP/USD finds itself on the front foot this morning with the pound returning back to levels not seen for a few weeks.

Key Movers

It's a jam packed week for currency markets elsewhere with a raft of data set to be released alongside the crucial catch up between President's Trump and Xi at the G20 summit. The US is also planning on hitting Iran with major sanctions in an attempt to stop it obtaining nuclear weapons in a sign of growing tensions between the two countries. Oil production has already dropped off in Iran following earlier sanctions and Brent prices are above $65/barrel this morning as supply is restricted which could add further support to the Canadian dollar's run of form which sees the currency approach 1.31 once again against its US dollar counterpart.

Expected Ranges

GBP/USD: 1.2650 - 1.2760 ▲

GBP/EUR: 1.1180 - 1.1260 ▼

GBP/AUD: 1.8290 - 1.8410 ▼

GBP/NZD: 19210 - 1.9250 ▼

GBP/CAD: 1.6680 - 1.6850 ▼