GBP/USD bears keep reins below 1.19. Given the strength of the US dollar’s momentum, support levels at 1.1777 and 1.1673 seem likely to be tested in the coming days, economists at Westpac report. 

Tory leadership battle doesn’t help the mood

“There is at least a little breathing room for cable ahead of the March 2020 pandemic panic lows near 1.14.”

“Given the strength of the US dollar’s momentum, support levels at 1.1777 and 1.1673 seem likely to be tested in coming days, though a hawkish Bailey might lend some support.”

“Conservative Party MPs jostling to replace Boris Johnson as PM are happily pledging to cut taxes, which appears to be what Tory members want to hear. But with a budget deficit near -6%/GDP and little talk of substantial spending cuts, this is probably not boosting the confidence of international investors.”