Markets are monitoring the first week of Keir Starmer as UK Prime Minister following an uneventful election day for sterling and gilts, FX analyst at ING Francesco Pesole notes.

All eyes on BoE speakers

“We doubt that fiscal prospects will have an impact on the pound just yet, while developments in French politics, US macro and Bank of England (BoE) rate expectations will remain the largest drivers for Pound Sterling (GBP).”

“Bank of England (BoE) officials are due to start speaking publicly again following a quiet period before the election, with hawkish external member Jonathan Haskel delivering remarks today, and Huw Pill and Catherine Mann (another hawk) speaking on Wednesday.”

“The UK data calendar includes May GDP (Thursday) but is relatively quiet before next week’s June inflation report. We see some downside risks for GBP/USD this week given the spillover from EU political risk, which however means that a return in EUR/GBP steadily above 0.8500 has been delayed further.”