The election process in the conservative party is to begin and Boris Johnson seems to be the favorite choice. As a result, the pound is positioned to be Brexit driven. However,  the pounds’ reaction in the last few days, may show how many negative scenarios the pound has already priced in.

USD gains on trade tension easing

The USD marked some gains on Wednesday and stabilized somewhat during today’s Asian session as trade tensions seem to ease a bit. US president Trump expressed optimism over making a deal with China and pressures on the USD seem to be reduced. The US president had expressed a “feeling” that a US-China trade deal could be reached, yet at the same time threatened to increase tariffs on US imports from China should there be no agreement.

Other economic highlights, today and early tomorrow

Today during the late European session, we get from Germany the final HICP rate for May and from Switzerland SNB’s interest rate decision, which is widely expected to remain on hold at -0.75%. We wouldn’t be surprised to see the bank issuing an accompanying statement with its content tilted towards the dovish side, which in turn could weaken the CHF somewhat. Also, during the European session, we get Eurozone’s industrial production growth rate for May and later on the release of OPEC’s monthly report may spark some interest among oil traders. In the American session, we get the US initial jobless claims figure and during tomorrow’s Asian session, we get Japan’s final industrial production growth rate for April.

GBP/JPY H4

AUD/USD H4

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