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Pound Bounces Off As Boris Johnson Wins First Round Of Tory Leadership Contest

The pound trimmed its early losses against its major counterparts in early New York deals on Thursday, as Boris Johnson won the first round of U.K. leadership election, clearing a hurdle to become next Tory leader and Prime Minister.

In the secret ballot held in the House of Commons, Johnson got 114 votes in the first round, where the party's 313 MPs have voted in.

Jeremy Hunt came second with 43 votes, followed by Michael Gove with 37 votes.

The next round of contest is scheduled on June 18.

Survey by the Royal Institution of Chartered Surveyors showed that UK house prices increased in May as the delay in Brexit helped to curb continuous fall in prices.

The house price balance rose more-than-expected to -10 percent in May from -22 percent in previous month. The balance was forecast to rise marginally to -21 percent.

The pound appreciated to 0.8883 against the euro, following a 2-day decline to 0.8920 at 3:15 am ET. The pound is likely to find resistance around the 0.86 level.

Final data from Destatis showed that Germany's consumer price inflation moderated as estimated in May from a five-month high on air tickets and holiday packages.

Consumer price inflation eased to 1.4 percent from 2 percent in April.

Following a 3-day decline to 1.2662 at 3:15 am ET, the pound recovered to 1.2707 against the greenback. The next possible resistance for the pound is seen around the 1.28 level.

Data from the Labor Department showed that U.S. import and export prices both dropped more than expected in the month of May.

The Labor Department said import prices fell by 0.3 percent in May following a revised 0.1 percent uptick in April.

The pound staged a modest bounce to 1.2616 against the Swiss franc, from a 2-day drop to 1.2573 at 5:00 am ET. The pound is seen finding resistance around the 1.29 region.

In the monetary policy assessment, the Swiss National Bank said it is introducing the SNB policy rate, replacing the three-month Libor, saying the future of the Libor is not guaranteed.

Interest on sight deposits held by banks at the SNB currently corresponds to the SNB policy rate and remains at -0.75 percent. The interest on sight deposits was unchanged at -0.75 percent.

The pound recovered to 137.78 against the yen, after dropping to a weekly low of 137.13 at 3:15 am ET. Next key resistance for the pound is seen around the 140.5 level.

Data from the Ministry of Economy, Trade and Industry showed that Japan's tertiary activity increased for the first time in three months in April.

The tertiary activity index rose 0.8 percent month-over-month in April, after a 0.2 percent decline in March. Economists had expected a 0.4 rise.

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