The GBP EUR exchange rate closed the week around the 1.1950 level after surrendering the 1.2000 resistance. The pound sterling versus the euro now faces PMI data on Monday which is a closely watched indicator of the economy’s performance ahead of GDP data. Markets will soon start looking towards the next meetings of the Bank of England and the European Central Bank.
The GBP to EUR has initial support around the 1.1920 level, but could head as low as 1.1700 if bearishness sets in.
Boris Johnson fighting for his political future
Boris Johnson is facing calls for a full disclosure of the Sue Gray inquiry, which may end his term as Prime Minster.
It comes while the prime minister has reportedly regrouped allies from his 2019 leadership campaign in order to boost support among Conservative MPs in the face of a potential no-confidence vote.
While some backbenchers have called for Mr Johnson to resign, many are reserving judgement until the publication of Ms Gray’s report, which is expected in the coming week.
But in a row over its publication, Angela Rayner, Labour’s deputy leader, said that “all accompanying evidence” must be disclosed when Ms Gray, a senior civil servant, presents her report.
It comes after The Guardian said that some evidence, including emails, text messages and transcripts of interviews, will not be made public. The Deputy PM, Dominic Raab, said that full disclosure will be up to Boris Johnson to decide, although that may not cut it.
The saga is adding some political instability to the pound sterling with fears that a new Prime Minister may shake things up.
The Pound sterling versus the euro awaits the latest PMI data on Monday that will set the tone for the week ahead.
Northern Ireland talks to take place again on Monday
Liz Truss arrives in Brussels on Monday to restart talks over the Northern Ireland protocol and urged the EU to stop ‘re-running past arguments’ and resolve the Northern Ireland Protocol row.
The Foreign Secretary will meet with Maros Sefcovic to try and break deadlock over Brexit trade rules and has said that “practical solutions” are needed.
The talks will happen as Truss, second favourite with the bookies for the Prime Ministerial role, will have a keen eye on the Boris Johnson issue.
The European Union are accusing the UK of breaching the Brexit deal and Remainers are smelling blood as the potential for the Brexit architect Boris to be booted from the leadership role.
On the country’s PM role, a Tory civil war is ongoing with reports that six leadership hopefuls are lining up to muscle Liz Truss out of the way if Boris Johnson leaves.
Sir Graham Brady needs 54 letters of no confidence in the PM before a vote can be held on whether to replace Boris Johnson. But the chair of the 1922 committee has received more than 1,000 other letters, many from lifelong Conservatives, who say they will abandon the party.
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