Former Foreign Minister Boris Johnson and current Foreign Minister Jeremy Hunt entered the final race for UK Conservative leadership after Thursday votes. Johnson (with 160 votes) and Hunt (with 77 votes) knocked out Environment Minister Michael Gove (75 votes). The pair will now battle for supports from 160k Conservative members around UK. Results of postal votes are expected to be announced in the week of July 22.
EUR/GBP pulled back sharply after ECB President Mario Draghi hinted on more monetary policy easing ahead. But there was no follow through selling since then Sterling’s upside is apparent capped by uncertain over who’s the next UK Prime Minister would be, and Brexit risks. 0.8871 minor support is a level to watch for the near term. Further rise is expected as long as 0.8871 holds, for 0.9101 key resistance. But break of 0.8871 will confirm short term topping and bring deeper pull back.
