Breaking: UK PM Theresa May to step down on June 7th, GBP/USD temporarily rises above 1.2700 before falling

Yohay Elam FXStreet

UK Prime Minister Theresa May has just announced she will be stepping down as Conservative Party leader on June 7th, paving the way for a new PM probably in July. The leadership contest will begin on the following week. Former foreign minister Boris Johnson is the leading candidate to replace her, and he is gathering momentum.

GBP/USD is trading around 1.2700, extending the recovery it enjoys due to USD weakness. Sterling seems to be buying the fact after selling the rumor. It hit a high at 1.2708 before falling back to struggling around 1.2700.

The PM has been under immense pressure to quit after her new Brexit deal had triggered angry responses from Brexit-supporting members that were furious that an option to hold a second referendum was included there.

Beforehand, May's Brexit deal was rejected three times by parliament. In her farewell speech, the outgoing PM is listing her achievements on housing, the environment, mental health, and other matters. She says that her successor will have to find a way to muster a majority in parliament. She ends her speech with a broken voice.

Here are the latest moves on the four-hour chart:

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

AUD/USD falls to near 0.7100 after slipping below 50-day EMA

AUD/USD depreciates after registering minor gains in the previous day, trading around 0.7120 during the Asian hours. The technical analysis of the daily chart shows the pair consolidating sideways within a rectangle pattern, as neither bulls nor bears gain control. The AUD/USD pair is holding a slight bearish tone however as it sits beneath both the nine-day and 50-day EMAs.

160.00: USD/JPY back near intervention territory after upbeat US jobs report

US Nonfarm Payrolls beat expectations by a wide margin in May, with 172K jobs added. The US Dollar rebounds after the release, helping USD/JPY recover from its intraday lows. Warnings from Japanese authorities continue to limit upside potential near the 160.00 threshold.

Gold targets $4,300 amid stronger Dollar

Gold faces increasing selling interest and navigates the area of three-month lows near the $4,300 mark per troy ounce on Friday. The precious metal’s decline comes as traders assess the stronger-than-expected NFP, while the bid bias in the Greenback and higher US Treasury yields also collaborate with the retracement.

Cardano hits five-year low even as Hoskinson clarifies "break" isn't an exit

Cardano (ADA) price is down 10% at press time on Friday, extending losses over 30% so far this week amid Charles Hoskinson's clarification that "break" isn't an exit.

Week ahead – Fed countdown begins amid US inflation data and geopolitical risks

Fed Chair Warsh’s first meeting approaches as key US inflation data could reshape expectations. Oil prices remain elevated as US-Iran talks continue; tariffs also return to the spotlight. ECB is expected to hike; will it be a one-off move or is July live?

The US economy defies the rules: 100 days into the Oil shock and the recession signal is still missing

More than three months after the start of the Iran war and the resulting disruption to global energy markets, the US economy continues to display remarkable resilience. The conflict has triggered a sharp rise in Oil prices, reignited inflationary pressures and fueled widespread concerns about a potential economic slowdown.