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

 

 

Share: Feed news

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD retreats toward 1.0850 despite weak US employment data

EUR/USD retreats toward 1.0850 despite weak US employment data

EUR/USD loses its traction and declines toward 1.0850 after testing 1.0900 earlier in the session. Because Nonfarm Payrolls data for October missed the market expectation by a wide margin due to hurricanes and strikes, the US Dollar manages to hold its ground.

EUR/USD News
GBP/USD climbs above 1.2950, looks to end week little changed

GBP/USD climbs above 1.2950, looks to end week little changed

GBP/USD benefits from the improving risk mood and trades in positive territory above 1.2950 in the American session on Friday as markets ignore the weak labor market data from the US. The pair remains on track to end the week flat.

GBP/USD News
Gold clings to small gains near $2,750 after US data

Gold clings to small gains near $2,750 after US data

Gold clings to marginal recovery gains and trades slightly above $2,750. The 10-year US Treasury bond yield struggles to push higher after the dismal October jobs report and weaker-than-expected PMI data from the US, helping XAU/USD keep it footing.

Gold News
Bitcoin Weekly Forecast: Run toward fresh all-time high hinges on US presidential election results

Bitcoin Weekly Forecast: Run toward fresh all-time high hinges on US presidential election results

Bitcoin could experience a price pullback in the next few days ahead of the US presidential election, analysts say, an event that will be key to determining whether and how the crypto class will be regulated in the years to come.

Read more
Bank of Japan holds rates steady amid signs of modest GDP growth

Bank of Japan holds rates steady amid signs of modest GDP growth

Monthly industrial production results have been mixed but generally indicate a modest recovery in third-quarter GDP. Clear guidance from the Bank of Japan remains elusive, with each upcoming meeting being pivotal.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures