Todays Market Overview
- Core Retail Sales (MoM) (May)
- Retail Sales (MoM) (May)
- BoE Gov Carney Speaks
The UK prime ministers race and first vote gets underway. Boris Johnson is favourite to win the race over the next 3 weeks.
If he wins by a big margin today, possible downside risk for cable, as he has a hard stance on Brexit.
An oil tanker has been apparently attacked with torpedoes in the Hormuz straight. Brent crude and US Crude oil has rocketed up. Potential risk for middle east tensions to escalate.
Todays Trade Ideas
GBPUSD – Wait for Prime ministers announcement
The outlook for Thursday is to sell just modestly on the open and then at 1.27199 or 1.272, as it rebounds from a push down overnight.
The news out of the US to possibly lower interest rates is only just on the radar, and more economic figures required to make a decision on the lower Us interest rate cuts this year.
If the UK prime minister vote sees a close number of votes between Boris and 2nd place, this could be bullish for the pound, especially if the 2nd place is Jeremy Hunt who is less extreme on a hard Brexit. If Boris wins by a big margin, this could send the pound down earlier before reaching the top resistance points.
If cable goes up, then look for a break at 1.27400 to go long.