Pound Trade Wary as PM Voting Continues
Earlier, the Pound Sterling retreated from the earlier struck 1-month peak but analysts say that was really attributed to a Dollar selloff more than any single event. It does still appear that FX traders are hesitant to go all in on the Pound while there is still uncertainty as to the conclusion of the leadership contest within the Conservative party. With only two viable candidates left in the running, it is looking more and more like Boris Johnson will take up residence at 10 Downing Street before July's end. That means that it will be left to him to negotiate the withdrawal terms of the October 31st departure from the European Union. Johnson has said on numerous occasions that he does not care if Britain crashes out of the EU without a deal in place.
As reported at 11:11 am (GMT) in London, the GBP/USD was trading higher at $1.2754, a gain of 0.1217%; the pair has ranged from a trough of $1.2721 to a peak of $1.2767 in today's session. The EUR/GBP was trading at 0.8931 Pence, up 0.0896% and off the earlier peak of 0.89480 Pence while the low was recorded at 0.89190 Pence in this trading day.
Germany IFO Surveys Mixed Outcome
In Germany, three IFO business surveys were released earlier today with mixed results. The June reading of the current assessment came in at 100.8, up from the 100.6 in last month's reading and better than analysts' expectations of a fall to 100.0. The business climate report was also improved at 97.4, when economists had predicted 97.3. The survey which missed analysts' forecasts was the expectations or outlook for German business, which came in at 94.2, down from the previous reading and off the 94.5 expected. The impact on the EUR/USD was to send it higher; it is currently trading at $1.139, up 0.1918%.