FOREIGN EXCHANGE REPORT

The EUR/USD pair remained stable, trading at around 1.1200, in the midst of uncertain EU elections which saw leading parties concede their seats and give way to more centrist and extreme ones, which seemed to receive more votes. U.S. President Donald Trump expressed hopes that a trade deal with China would be reached, while another bank holiday in the UK prompted thin liquidity.

The Pound-to-Dollar exchange rate is seen recovering at roughly 1.2750, with news of Theresa May’s resignation on Friday triggering uncertainty. Nigel Farage’s Brexit party dominated at the EU elections, but was matched by three Remain parties.

Following the announcement of the British Prime Minister’s resignation last Friday, the Pound shattered a record losing streak against the Euro and the Dollar. Theresa May will resign from office on Friday, June 07. The GBP/EUR pair traded at 1.1341, down by 0.50% on the week, while the GBP/USD rate fell 0.20% to 1.2680 on the week.

Elsewhere, the Australian Dollar is likely expected to end its post-election gaining streak, as the issues which previously led to a bearish outlook are still present, says Morgan Stanley analyst Andrew Watrous, who has kept his bearish forecast for the currency.

Following the surprising results of the general election in May, the Aussie recovered above 0.69 against the greenback. The strengthening Australian unit boosted the Pound-to-Australian-Dollar rate to 1.8360 from 1.8591.