The GBP weakened on the back of the interest rate decision released yesterday by the BoE. The bank remained on hold as it was expected. Despite some hawkish comments by BoE members, the bank lowered its Q2 GDP expectation to 0.0% qoq. Also, the bank seems to prefer an ongoing tightening of the monetary policy at a gradual and limited pace. Therefore, the bank is assuming that a smooth Brexit will take place, which is highly uncertain. Regarding the UK political situation, the first phase for replacing Theresa May seems to be ending and now Conservative Party members will have to choose between Boris Johnson and Jeremy Hunt for its next leader.

Today during the European session, we get Eurozone’s preliminary PMI figures for June. In the American session we get Canada’s retail sales growth rates for April, the US preliminary Markit Mfg PMI for June and the Baker Hughes oil rig count figure. As for speakers, BoE’s Tenreyro, Fed’s Mester and Daly are scheduled to speak. During Monday’s Asian session RBA governor Lowe speaks.

EUR/USD H4

GBP/USD H4

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