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21st June Market Updates

The next Tory leader and next prime minister of the United Kingdom will be either Boris Johnson or Jeremy Hunt following two rounds of votes by Conservative MPs yesterday.
- Sajid Javid was the first candidate eliminated in the first vote on Wednesday after only receiving 34 votes with Jeremy Hunt receiving 59, Michael Gove receiving 61 and Johnson 157.
- In the second ballot (fifth overall) Michael Gove was eliminated after receiving 75 votes. Jeremy Hunt received 77 and Boris Johnson received 160.
- There have been claims of tactical voting from Boris Johnson’s team to end Gove’s campaign but this has been denied.
- Mr Hunt has promised Mr Johnson the “fight of his life” in the coming weeks. (BBC)
The Bank of England kept rates unchanged at 0.75% yesterday with the MPC voting unanimously in favour of no change.
UK retail sales came in as expected at -0.5%.
US Philly Fed manufacturing index came in weaker than expected 0.3 vs 10.6.
GBP/EUR could not maintain its upward momentum from Tuesday and Wednesday and posted a loss of -0.08% on Thursday. The market opened at 1.1257, traded a high of 1.1270, a low of 1.1208 and closed at 1.1246.
US President Donald Trump suggested that Iran shooting down a US drone was down to a human error. There is a dispute over whether the drone was in international or Iranian airspace.

Overnight

GBP/AUD, GBP/NZD and GBP/JPY are currently trading 1.8345, 1.9320 and 136.63, respectively.

Today

This morning, flash manufacturing PMI and flash services PMI from the Eurozone came in at 47.8 and 53.4 respectively vs predictions of 48 and 53.
UK public sector net borrowing is due at 9.30am.
Canadian core retail sales m/m came is expected at 1.30pm.
We will also see US flash manufacturing PMI come in at 2.45pm.

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