Cable bounces from the dangerous 1.2470 zone (Fibo 38.2% of 1.2155/1.2866 upleg / converged 20/30DMA’s) but remains within narrowing congestion which extends into the fourth straight day, awaiting the key event today – a confidence vote on UK Prime Minister Boris Johnson.

Johnson faces huge problems as the so-called ‘Partygate’ scandal angered lawmakers and soured the mood in his Conservative Party as many questioned PM’s authority after he organized alcohol-fueled parties when Britain was under strict lockdowns in attempts to bring the latest waves of coronavirus under control.

The scandal showed the depth of anger within the Conservative Party, but it could be also a top of an iceberg, and Johnson is also heavily criticized by the party’s lawmakers for not having a longer-term plan while skyrocketing prices on soaring inflation hit households and risk of the economy sliding into recession is rising.

At least 180 of 359 Conservative lawmakers need to against Johnson to remove him, as many from the party share the opinion that the main question is when and not if.

On the other side, the voters will face a sort consequences and possible crisis if they vote against Johnson, due to the lack of an obvious successor, as a number of names of potential successors has been already listed.

The vote is due later today and the results are to be released shortly after.

The pound could take a hit if lawmakers vote to remove Johnson, as the decision would add to persisting uncertainty that would partially offset positive tone on hawkish BoE, while it may reduce still existing downside risk if Johnson wins the vote and stay afloat on expectations for more aggressive rate hikes, however, darkening economic outlook would weigh on the overall mood.

Res: 1.2567; 1.2589; 1.2616; 1.2666
Sup: 1.2470; 1.2458; 1.2411; 1.2350

The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.

Feed news Join Telegram

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD recovers above 1.0450 as USD slips ahead of US inflation

EUR/USD recovers above 1.0450 as USD slips ahead of US inflation

EUR/USD is trading above 1.0450, displaying a modest rebound on a minor pullback in the US dollar. The US Treasury yields rebound amid cautious optimism, ahead of PCE inflation. The US Core PCE Price Index is seen easing to 4.7% YoY in May. 

EUR/USD News

GBP/USD advances towards 1.2150 amid USD retreat, US data eyed

GBP/USD advances towards 1.2150 amid USD retreat, US data eyed

GBP/USD is advancing towards 1.2150 amid a broad US dollar retreat, despite a mixed market mood. BOE's Bailey said the UK economy is facing a very large real income shock. UK data and US PCE inflation awaited. 

GBP/USD News

Gold seems vulnerable near two-week low, eyes US PCE inflation data

Gold seems vulnerable near two-week low, eyes US PCE inflation data

Gold traded with a mild negative bias for the fourth successive day on Thursday and languished near a two-week low touched the previous day. The XAUUSD was last seen hovering around the $1,816 region and was pressured by the prospects for more aggressive rate hikes by the Fed.

Gold News

Breaking: Bitcoin price drops below $19,000

Breaking: Bitcoin price drops below $19,000

Bitcoin price has breached a critical area of support over the past few hours, dipping below $19,000. Transaction history shows that a large number of addresses acquired BTC above $20,000. 

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Majors

Cryptocurrencies

Signatures