Published: 06/06/2022 By ECAPLondon traders return to the market today after the weekends Jubilee celebrations. Sterling had a turbulent couple of days whilst the UK was out of the market, with GBPUSD posting over a cent trading range. The pairing hit the low of around 1.2470 before quickly returning to trade around 1.2570 levels this morning, upon London returning to markets. With no real high level economic data due this week from the UK, eyes flutter to next week where the Bank of England will take centre stage on their interest rate decision.
News this morning is that we will see a vote of no confidence being held this evening between after 15% of the conservative party have submitted their official letters of no confidence. The vote will be held later this evening, where Tory MP's will vote for whether Boris remains in power and leadership of the party, should Boris win, he will become immune from another vote for the next year. Boris will need to collect 180 votes to remain in the position of Prime Minister, whilst this would seem unsettling for Sterling, the currency seemingly is holding well and change of leadership doesn't really change the narrative on the status of the economy and how the UK will curb crippling inflation.
Friday saw the release of the US Non-Farm Payroll figure, where we saw an uptick from the expected figure but largely inline. The data was forecast to show 325k jobs added and the actual figure came in at 390k, unemployment however did fall by 0.1% to 3.6%. However with London being out of the market for these releases seems to have softened the potential impact and instead investors now look to inflation figures due from the US later this week and the ECB interest rate decision meeting, due Thursday.