Will the real Boris Johnson please stand up!
The Pound moved higher on Monday with news leaking that Boris Johnson could be losing some ground in the Conservative leadership race. The Pound and Dollar pair finally broke out of its Asian session consolidation phase and surged through 1.2760 hitting one-month tops. The pair remained well supported by the post-FOMC bearish pressure, which showed no signs of receding on Tuesday in the wake of declining US treasury bond yields.
Markets are waiting for comments from Federal Reserve (Fed) Chair Powell today which could have an important impact on both interest rate expectations and the Dollar. Overall US sentiment remained weak and the Euro broke above the 1.1400 level to fresh three-month highs, although there was selling interest above this with a dovish Fed rhetoric priced in.
The Euro broke the 1.1400 level to fresh three months high on the back of strong speculation we will see one if not two possible rate cuts from the Fed by the end of the year. The renewed dovish stance from the European Central Bank (ECB) and USD-dynamics should dictate the price action around the pair in the near term, helped at the same time by the broad risk-appetite trends and trade tensions.
Data to watch:
24H USD OPEC Meeting
07:05 AUD RBA’s Bullock speech
08:15 EUR ECB’s De Guindos speech
13:00 USD S&P/Case-Shiller Home Pirce Indices (YoY) (Apr)
13:00 USD Housing Price Index (MoM) (Apr)
14:00 USD Consumer Confidence
14:00 USD New Home Sales (MoM) (May)
16:00 USD Fed’s Bostic speech
17:00 USD Fed’s Chair Powell speech
18:15 EUR ECB’s Coeure speech