Sterling is weaker against both the euro and the dollar this morning following the Jubilee Bank Holiday weekend. This comes ahead of a fairly light week for UK economic data.
News this morning reveals that a vote of confidence in the Prime Minister is expected to take place between 6pm and 8pm this evening. This follows a number of Conservative MPs submitting letters to say that they no longer have confidence in the Prime Minister.
In the secret ballot, Boris Johnson will need to secure a majority (180 votes) to stay in power. If he wins, he would be exempt from another vote for a year.
The main event on the continent this week is the European Central Bank’s interest rate decision, which is due to take place on Thursday. Officials are expected to announce the end of monetary stimulus and pave the way for interest rate hikes in the coming months.
Across the pond, the main event this week is US inflation data, which is due to be released on Friday. The annual inflation rate is expected to stay the same at 8.3%, whilst core inflation is predicted to have dropped slightly in May.
Make sure any upcoming transactions are protected against the risks of sudden market movements. Secure a fixed exchange rate now with a forward contract; call your Personal Trader on 020 7898 0541 to get started.
