GBP - British Pound
Prime Minister hopeful Boris Johnson broke his silence last night in a wide reaching interview that provided a little insight into his Brexit plan. In a quiet day for the UK yesterday where the pound failed in its rally to break and hold 1.2750 against the USD, this update from Johnson will put investors and businesses on edge. Johnson, who still remains the firm favourite, indicated that he could be able to come into Downing Street and negotiate a brand new deal with the EU, stepping over Theresa May's dead deal. Persuading Brussels to come back to the table once again will be difficult for any new Prime Minister, particularly with the October 31st deadline ticking away.
Mark Carney, Governor of the Bank of England, is set to testify in front of Parliament tomorrow following May's inflation report. This could be the only moment in the week where sterling takes the onus rather than being dictated to by heightened global tensions.
With regards to global tensions, it seems each day these are ramped up and Monday was no different. Yesterday evening, President Trump signed the executive order denying Iran's leaders access to any financial instruments. Despite the recent recovery in oil prices, the market dropped off yesterday as fears begin to grow amid concerns demand for oil will fall.
In the run up to each FOMC meeting there is a media ban for Fed officials but afterwards they are let loose and tonight Jerome Powell kicks off proceedings alongside Williams and Bullard. Of course, we couldn't talk about the Fed, it's u-turn towards interest rates and cuts, without talking about Donald Trump. Trump weighed in once again claiming on Twitter that the Fed 'doesn't know what it's doing' and that by raising rates too fast, growth has been hampered. The market is now fully pricing in an interest rate cut at the end of July and it would appear that President Trump will be vindicated as he has long called for rates to be cut in line with the Eurozone and Japan.
Finally, to mark the end of a hectic day for investors yesterday Bitcoin broke $11,000, a 15 month high, with some investors commenting it may become a safe-haven...
1.2650 - 1.2780 ▲GBP/EUR:
1.1150 - 1.1220 ▼GBP/AUD:
1.8270 - 1.8370 ▼GBP/NZD:
1.9160 - 1.9250 ▼GBP/CAD:
1.6780 - 1.6850 ▲