Good morning,
GBP: New push for Theresa May to go
Laura Kuenssberg, BBC political editor, has hinted that there is a new push underway to oust the PM this weekend which would coincide with the end of the EU elections. When you couple this with the growing public support for Nigel Farage and his Brexit Party, there is another convincing argument for her to step down following yesterday’s attempt at winning over sceptics. The PM has offered Parliament a vote to decide on a further referendum, but only if they back her withdrawal agreement first.
The pound has started today’s trading session lower across the board again with GBPEUR slipping back into the high 1.13s, showing little enthusiasm for both Theresa May’s offering and her short term prospects of remaining in power. Keep an eye on 09:30 as we have both RPI (Retail Price Index) and CPI (Consumer Price Index) data releases. Sterling buyers are few and far between and GBP remains in free-fall.
USD: Fed minutes
At 19:00 we have May’s Fed minutes, which will be watched very closely by those who are debating whether the central bank has the ability to turn hawkish or dovish. The surprise cut in interest on excess reserves will be a focal point.
Trump’s administration has granted a small reprieve for US companies who are currently working with Huawei which provided some relief to equities and the dollar, but there is still no clear end in sight. US made technology, which is being used in China to build and develop surveillance equipment, will now possibly be subject to restrictions. This is very much a story which develops week by week, with zero appetite for forecasting an end solution.
Have a great day.