Today's news headlines:

‘Race for UK leadership tightens as rivals vie for run-off spot’. A fourth round of voting will take place today to decide the final two in the race to become the next Prime Minister. Rishi Sunak is just five votes away from the 120 needed to cement his position. Kemi Badenoch has faced a late wave of support, but with final voting today, it’s unlikely she will progress further. Second place seems less certain; Penny Mordaunt’s support has stalled, and Liz Truss is just 11 votes behind. (Bloomberg)

‘Treasuries trapped in 3% world show oodles of confidence in Fed’. The US Ten-year Treasury yield is trading just below 3% this morning. As buying of these longer-dated bonds picks up, the belief that the Federal Reserve will do enough to bring down inflation appears to be the rationale for the investors moving into the asset class. Coupled with significant growth concerns, the appeal of bonds appears more attractive in such a turbulent market. (Bloomberg)    

Today

US markets closed lower yesterday following an announcement that Apple will slow hiring. Asian shares dipped lower overnight, led by declines in tech stocks, while European markets opened broadly higher. The US Dollar has slipped this morning as the Japanese Yen gains and crude oil holds above $100 per barrel.

Events

UK Jobless Claims Change (June): -20.0K (est. -19.7K)
UK Unemployment Rate (May): 3.8% (est. 3.8%)
Eurozone final CPI and Core CPI y/y (June): 10:00AM
US Housing Starts (June): 1:30PM
Bank of England Governor Andrew Bailey speaks: 4:00PM
US Federal Open Market Committee Member Lael Brainard speaks: 7:35PM

Interbank rates:

GBP/USD – 1.1990
GBP/EUR – 1.1778
EUR/USD – 1.0179
USD/CAD – 1.2947

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