Pound to tumble on election results

2 June, 2017

The British pound is under pressure again today against the Euro as more polls released before election day show the opposition labor party closing the gap on Theresa May’s conservatives.

At 3.26pm (GMT) the British currency was trading at 87.04 against its European counterpart, down from 87.32 in yesterday’s close

A new YouGov poll that showed British Prime minister Theresa May ahead in the polls by 5 points just a few days ago, now shows ta gap of 23 points which is between the margin of error and clearly shows that May’s government is in danger of losing its grip on power,

“Recent polls indicate a potential scenario where Theresa May could be short of the seats required to form a Government, which has sparked concerns of political instability prior to the Brexit negotiations.” said FXTM research analyst Lukman Otunuga

Even better than expected manufacturing data out today is not causing any interest in the pound, as investors are weary of how far the currency could fall if there is an upset in the elections next week.

"I wouldn't say the data was particularly strong," said Alvin Tan, currency strategist with Societe Generale on sterling's limited reaction to the data,

"It's worth bearing in mind the bigger issue around sterling in the next couple of weeks is the election, not so much the economy."


Source link  
Higher inflation may benefit gold

Higher inflation in the US usually translates to rising interest rates which is usually negative for gold, as higher rates mean bigger yields which tends to leave...

Pound to fall as rates stay on hold

With all the uncertainty surrounding the UK at the moment such as political instability as well as the current Brexit negotiations that seem...

Oil at more than $150?

With the introduction of sanctions against Iran as well as a reduction in the development in new oil infrastructure, the chances for the highest oil prices in a decade is growing by the day...


Euro to remain subdued

After 3 straight days of gains the Euro has hit a wall against its US counterpart and according to one analyst the currency may remain subdued for some time...

Euro may be about to crash

The Euro has stabilized in today's trading session after suffering a big drop on Friday and the losses may continue to come as political instability grips the EU...

Gold in for a big week

It's going to be a big week for gold starting with tomorrow's meeting between US president Donald Trump and North Korean President Kim Jong Un which is followed by Wednesday's interest rate decision...


Gold may breakout this week

Over the last few weeks, the gold price has formed a solid base around the $1,290 mark and has pushed up through $1,300 several times before hitting resistance...

Gold to benefit if Trump acts

Gold is now trading higher for a 2nd straight day following on from Yesterday's interest rate decision from the Federal Reserve and some say the...

Dollar to continue its recent strength

It seems as if the market has finally woken up to the potential of the US dollar after the recent gains it racked up against most major currencies over...

  


Share: