Theresa May will on Wednesday become the politician tasked with leading Britain into talks to leaving the European Union after her only competitor in the race to succeed Prime Minister David Cameron pulled out unexpectedly.
GBP traded above $1.30 as Theresa May was announced to Become Prime Minister. As May was a strong supporter of the Remain camp, she could negotiate better with the EU.
Mark Carney will unveil stimulus plan this week as the Bank of England could cut interest rates for the first time since 2009 this week.
Japan's market share surged by 4% after PM Shinzo Abe's government achieved a major election victory. Shinzo Abe ordered a new round of fiscal stimulus spending after a great election victory. The Japanese yen declined over victory in upper house elections now gives Abe the right to draft economic policy.
Yen fell by 2% vs. a basket of currencies, negatively affected by Abe’s remarks, as ruling party sources said to Reuters before the election that, ‘The government was ready to spend more than 10 trillion yen ($100 billion)’. USD traded above ¥102 and could re-test ¥103 during the next period.
Gold fell on Monday as the U.S. dollar and U.S. equities rose. The yellow metal traded at $1,350 during yesterday’s trading session before recovering to $1,355 and could stand under pressure in anticipating important data from U.S. and the BoE.
Oil fell to $44.50 as U.S. rig count weighs and could decline further to $44.
The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM Capital Limited. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.