GBP

Political uncertainty is the hot topic in the UK following last week’s resignation of Boris Johnson. Up to ten conservative MP’s have now thrown their hat in the ring to become the new Conservative leader with no clear front runner at present. In spite of the situation, Sterling has remained stable posting gains against the euro towards the end of the week. With no other key UK data out this week, news and political uncertainty will be the key drivers for the pound.

USD

Last week saw the latest jobs report for the US, a reading that shocked investors. In the month of June, 372k jobs were added, up from the expected 268k. Additionally, unemployment remained at 3.6%. While the numbers were impressive, they are unlikely to alter the Federal Reserve’s current policy plans. Thus, we still expect a 75 basis points interest rates hike at their next meeting.