House Speaker Mike Johnson (R-LA) is short of the votes required for re-election as Speaker of the House of Representatives after three conservative Republican House reps voted against his candidacy in an ongoing roll call to open the 119th Congress. Assuming the handful of conservatives who declined to participate in the roll call cast their vote at the end of the ballot, the House will either engage immediately in another round of voting or recess temporarily.
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MNI spoke with the head of the ISM services index about the outlook. On MNI Main Policy Wire now, see sales@marketnews.com for details.
Recent gains in GBPUSD are considered corrective and the move higher has allowed an oversold trend condition to unwind. Initial firm resistance is 1.2718, the 20-day EMA and a key short-term hurdle for bulls. It has been pierced, a clear break of the average would signal scope for a stronger recovery. The medium-term trend direction is down, with moving average studies in a bear-mode set-up. The bear trigger is 1.2487, the Nov 22 low.
A notable drop in oil prices (Brent -70 cents about 20 minutes ago in short order) appears to be underpinning equities and Treasuries to session highs. 10Y US TIPS-implied breakevens have dipped to session lows a touch through 2.30%, down 3bp from the day's (and 7-session) highs. Some color on the oil move from our Commodities team: