Free Trial

Sterling Under Pressure As Tory Rebellion Continues

GBP

Sterling marginally underperforms its G10 peers in early Asia-Pac trade, as the UK political turmoil escalates and a flurry of ministerial resignations continues, with Boris Johnson facing mounting pressure to quit.

  • Welsh Secretary Simon Hart has just become the third Cabinet member to step down, while Health Minister Edward Argar has also just resigned, which comes after Levelling-up Secretary Michael Gove was sacked for "disloyalty."
  • Cable last deals at $1.1921, a touch lower on the day, after lodging new two-year lows on Wednesday. Next support is at $1.1876, which limited losses Wednesday, followed by $1.1846, the 0.764 proj of the May 27 - Jun 14 - 16 price swing.
    • Short-end GBP/USD implied volatilities keep rising in the Tokyo morning, but are yet to test overnight highs.
  • EUR/GBP last seen at GBP0.8542, tad higher at typing. Focus turns to the 50-EMA/yesterday's low of GBP0.8536/0.8533. A break here would expose Jun 9 low of GBP0.8486.
  • GBP/JPY last trades at Y161.97, down 15 pips on the day, with bears looking for a sell-off past Jun 16 low/round figure of Y160.01/160.00.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.