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Boris Johnson is to become the UK Prime Minister

Published July 24, 2019

Author: Rowan Murphy

Much ado about nothing in overnight markets with only some second tier data out of the US being released. The big news has been the appointment of Boris Johnson to the position of UK PM, he reaffirmed his promise that the UK will leave the EU with or without a deal by the 31 October deadline.

Leading into the Fed rates announcement next week the Aussie is expected to remain in a tight trading band. At the moment we are seeing it push against weekly lows with no real driver for the move, although importers could expect the Aussie crosses to rally if risk sentiment firms. US China trade talks seem to be back on the table and this could be the catalyst needed to see some ‘risk on’ sentiment return to the market.

In world news the IMF downgraded their international growth forecast for 2019 to 3.2% (from the 3.3% they forecast in April). This downward revision isn’t their first and paints a bleaker picture of the world growth story as a whole.

With no ‘material releases’ today expect the Aussie to drift.