European open – UK PM announcement imminent

Europe higher but major events lie ahead

Europe is off to a decent start although I don’t think we can read too much into early week gains given the vast majority of the major market events will come over the next few days, and even into next week if you include the Fed announcement, after which summer may unofficially properly start.

Source – Thomson Reuters Eikon

Of course, the new UK PM will be announced around lunchtime today which is clearly a hugely important event but with Boris Johnson such a clear favourite, markets may not be as responsive as you would maybe expect, with much of his negative points – most notably his views on no-deal – being priced in.

Of course, we’ve had many shocks in recent years, could Hunt be the next? This could be a big shock for markets but arguably a positive one for sterling given Hunt’s past remain bias and opposition to no-deal.

Of course, he hasn’t rejected it altogether and has claimed the backstop is dead but he’s arguably seen as being far more moderate than his opponent.

Economic Calendar

For a look at all of today’s economic events, check out our economic calendar.

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.