The pound is holding up well in the European morning today
But price isn’t really going places to be fair, or at least that is the case in cable. Price action continues to sit around 1.2450 with a slight nudge higher in the past hour after consolidating around 1.2425-50 since overnight trading.
There isn’t much notable fresh headlines since Boris Johnson won the Tory leadership race and that’s leading to more sluggish trading over the past few sessions.
If anything else, just be mindful of more short covering towards the key hourly moving averages. The 100-hour MA (red line) helped to stall gains after Johnson’s victory announcement yesterday and the confluence of the near-term levels now around 1.2485 will be a key level that may limit gains in the coming session.
Looking ahead on the UK agenda, we’ll have the final PMQs session for Theresa May later at 1030 GMT. After which, she will head to the Palace to tender her resignation and then Johnson will secure an invite to form his government.
Thereafter, he will head to No. 10 to make his first speech as prime minister so that may be one to watch out for later in the day.
Other than that, the UK parliament is set to observe a recess period starting from tomorrow until 3 September. Hence, any notable Brexit progress (good or bad) may be few and far between during the period.
As such, the pound may see some reprieve as the spotlight gets turned off for a bit but don’t expect that to last too long.
Obligatory BoJo GIF:
The Brexit force is strong with this one…