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Fri 19 Jul 2024 13:05GMT

Pound (GBP) Rises as Boris Johnson Receives Majority Confidence in Tory Vote

Published: 13 Jun at 4 PM Tags: Euro, Dollar, Pound Sterling, America, UK, Eurozone, Australian Dollar, New Zealand Dollar, Canadian Dollar, Australia, New Zealand, USA, Canada, China, Germany,

Pound Sterling (GBP)

The Pound rose today after Tory MPs voted on their future leader, with Boris Johnson, the former Foreign Secretary and hard-Brexiter, securing the majority of 114 votes.

This has caused some relief for Sterling investors as the political deadlock has eventually shifted, although with Boris Johnson’s staunch stance on Brexit, this is unlikely to last.

Today also saw the publication of the RICS housing price balance figures for May, which came in at a better-than-expected -10 – instead of the consensus -21% decrease.

US Dollar (USD)

The US Dollar has remained generally subdued with fears rising over the continuing US-China trade tensions, and concerns that oil price could fall by up to $45 per barrel as a result.

Today also saw a slew of disappointing US economic data, with both the US continuing jobless claims for May increased along with the initial jobless claims figures for June.

Euro (EUR)

The Euro benefited from the printing of the German inflation rate figures for May today, which came in as forecast at 0.2%.

These were followed by the annual German harmonized index of consumer prices for May, which remained unmoved at 1.3%.

Germany’s Economic Ministry sounded a cautious tone, however, stating:

‘After significant growth in gross domestic product in the first quarter, the prospects for the second quarter remain subdued. After the muted developments in the second quarter, positive influences should take hold more forcefully with a gradual improvement of the external environment.’

Australian Dollar (AUD)

The Australian Dollar sank against most of its competitors today following the release of the Australian unemployment figures for May, which increased above forecast at 5.2%

US-China trade tensions held back the ‘Aussie’ further, with China remaining curiously silent ahead of the important G20 meeting, which will see Chinese President Xi Jinping and US President Donald Trump meet.

New Zealand Dollar (NZD)

The New Zealand Dollar also remained subdued on US-China trade tensions, with the New Zealand economy particularly sensitive to developments regarding China.

Chinese economic data, however, failed to uplift the struggling ‘Kiwi’, following the improvement in the Chinese foreign direct investment figures which improved at 6.8%.

Canadian Dollar (CAD)

The Canadian Dollar benefited from rising oil prices today following an attack on a tanker in the Gulf of Oman, providing some uplift for the oil-reliant Canadian economy and lifting ‘Loonie’.

Due to the possible disruption in the Middle East this has provided US and Canada oil suppliers – and thus price – with a boost.

As of Thursday, 13th June 2019, the Pound Sterling currency rates mentioned within this news item were as follows:

GBP EUR exchange rate was 1.1242, GBP USD exchange rate was 1.268, GBP AUD exchange rate was 1.8337, GBP NZD exchange rate was 1.9331, GBP CAD exchange rate was 1.6898, and GBP CNY exchange rate was 8.7767.
Dominic Lee About Author: (474 Posts)With over ten years experience as an economist – including four years spent as a chief economist with a major currency broker – Dominic has acquired a wealth of knowledge which he uses to forecast market movements. Dominic now works as an independent business advisor and writes for several financial publications.

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