FX Traders Watch PM Battle
As the voting begins today for a new Prime Minister, FX traders are sitting on the sidelines wary of the prospect that the next PM could take the UK out of the European Union without an agreement in place. The voting begins today and will continue until well into July. Boris Johnson remains the odds on favorite to win the seat from Theresa May, with bet-makers saying that his odds are now at about 67%. Johnson has already said that if there is no agreement in place by the October deadline, he would have no qualms about leaving the bloc without a deal, a prospect that is worrying markets.
As reported at 11:30 am (GMT) in London, the EUR/GBP was trading at 0.8908 Pence, a gain of 0.145%; the pair is falling from the session peak recorded at 0.89200 Pence while the low was at 0.88939 Pence. The GBP/USD was lower at $1.2764, down 0.1229%; the pair has ranged from $1.2663 to $1.2701 in today's trading session.
Yen Higher as Trade Fears Ignite
Elsewhere, risk appetite was suppressed as there still seems to be no clarity to the ongoing trade rift between China and the US governments. As a result, equities in Asia were all lower, and the uncertainty helped to push the safe haven Yen broadly higher. The GBP/JPY was trading at 137.452 Yen, down 0.1417%; the pair's range for this session thus far has been at a low of 137.108 Yen to a peak of 137.753 Yen. The USD/JPY was also down at 108.4640 Yen, a loss of 0.0092%.