Forex today: The UK's PM announced her resignation, GBP unnerved


  • Forex on Friday was once again centred around politics.
  • UK PM May announced her resignation.

Risk appetite picked up in tot he long weekend for US and UK markets with equities rebounding and aiding a recovery in commodity-FX. The big news came with 

The UK's PM announcing her resignation due to take place on 7th June and then act as caretaker PM until a new leader is elected. Borris Johnson, who is in the running for taking My's place, a leading Brexiteer and former foreign secretary, said in respect to May's teary resignation speech, "A very dignified statement from. Thank you for your stoical service to our country and the Conservative Party. It is now time to follow her urgings: to come together and deliver Brexit."

"Labour leader Jeremy Corbyn was less sympathetic and proclaimed that the new Conservative Party leader “must call an immediate election” once in power. The UK is due to leave the EU on October 31 and whoever leads Britain post-May will have their work cut out for them," analysts at ANZ Bank explained.

Elsewhere, Markets US April Durable Goods Orders came from the U.S. calendar, missing estimates by a small amount (-2.1%m/m, est. -2.0%m/m) and non-defence, ex transport (0.0%m/m, est. -0.1%). "However, downward revisions to March gave a decidedly more negative profile to the volatile data series (headline +1.7%m/m from +2.6%m/m, non-defence/ex transport -0.6%m/m from flat). This raises downside risks for both Q1 GDP and Q2 GDP," analysts at Westpac explained.

As for yields, the US 10 Year Treasury Yield ranged sideways in a 2.31%-2.33% range, the 2 Year between 2.15% and 2.17%. 

Currency price action

The analysts at Westpac summarised Friday's price action as follows:

  • EUR/USD rose from 1.1180 to 1.1210, ticking up a little on Monday’s open. While populists and far right parties performed strongly in some EU elections e.g. France, in general the big winners were the Greens and pro-business Liberal parties. 
  • GBP/USD chopped up 60 pips, to 1.2730.
  • USD/JPY fell from 109.75 to 109.30 without obvious catalyst. 
  • AUD/USD rose from 0.6885 in the Sydney afternoon to 0.6930. 
  • NZD/USD rose from 0.6515 to 0.6555. 
  • AUD/NZD rose from 1.0555 to 1.0580.

Key notes from U.S. session: 

DJIA logs longest weekly losing streak since June 2011

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

When are the UK data releases and how could they affect GBP/USD?

GBP/USD stays pressured around 1.2550 after flashing the biggest losses in two weeks the previous day. The British economic calendar will entertain the global traders amid recently sluggish markets at 06:00 GMT with the GDP figures for May.

GBP/USD News

EUR/USD looks north but risk aversion could play spoilsport

EUR/USD looks north with the German economy showing signs of bottoming out and heightened expectations for an EU fiscal stimulus plan. Stronger gains, however, may remain elusive if the stock markets drop, tracking losses on Wall Street. 

EUR/USD News

Gold: Breaks $1,800 threshold, nearby support lines in focus

Gold prices extend Monday’s pullback from $1,813.54 to challenge Friday’s low. Monthly support line, a five-week-old rising trend line to question the bears. Bulls will seek entries beyond the weekly resistance line.

Gold News

US Consumer Price Index June Preview: Prices slowly return to normal

Consumer prices that collapsed in March and April have begun to return to normal as people return to work and shopping, and the country puts the complete lockdowns of the spring behind it.

Read more

WTI: Bears firming up the grip towards immediate support lines under $40.00

WTI stays on the back foot after taking a U-turn from $40.87 the previous day. An ascending trend line from June 25, monthly support line are on the sellers’ radars. A three-week-old falling trend line restricts the pair’s immediate upside.

Oil News

Forex MAJORS

Cryptocurrencies

Signatures