Britain's political chaos continues as the pound weakens but in the US investors will be watching data from initial jobless claims and existing home sales.

A look at the day ahead…

The sudden resignation of UK’s interior minister Suella Braverman, who disagreed with the prime minister’s actions, reflects the weakening of Truss’ authority after just weeks in the job. According to the Telegraph, officers in charge of the Conservative Party are set to meet today to discuss the rising leadership crisis.  

As investors watch the political uproar, Sterling failed to get any support from the British inflation increasing back to double digits. This increases the likelihood of the Bank of England stepping in and hiking rates next month. Sterling has already declined 17% so far this year, it fell 0.1% in Asian markets early this morning.

Over in Asia, some markets are fixated on the yen, which is floating around the break of 150 to the dollar. A level that would reach a 32-year low. Japan’s central bank stated it would hold emergency bond buying, offering to buy around $667 million in government debt. The Japanese currency has shed 23% so far this year, making it the weakest major currency in Asia.

Today sees US initial jobless claims at 13:30 GMT and existing homes sales data at 15:00 GMT. As well as speeches from some of the Fed members such as Harker, Bowman, Governor Jefferson, and Governor Cook.

On the corporate front, earnings reports are due from Volvo, L’Oréal’, Hermes International, Dow, Nokia, American Airlines, Snap, and many more for investors to watch.

(sources: proactiveinvestors.uk, reuters.com, investing.com)