The pound is still weaker against the euro this morning but is stronger against the dollar after the release of UK inflation data for June.
Inflation came in at 9.4%, up from 9.1% in May. This is now the ninth consecutive month that inflation has risen which has increased expectations that a 50 basis point interest rate hike by the Bank of England is likely next month.
In the Conservative leadership race, Rishi Sunak remains the front runner while Kemi Badenoch has been eliminated. Today, Tory MPs will decide which two of the final three candidates they wish to be put to a ballot of party members, who will have the final vote.
In the eurozone, news that Russian gas giant Gazprom will resume its provision of gas to the EU tomorrow has supported the euro. Markets now await the European Central Bank’s latest interest rate decision and a speech by ECB President Christine Lagarde tomorrow.
The dollar has been given little to play with in recent days and remains weaker. Today’s existing home sales and tomorrow’s jobs data could provide the greenback with some support.
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