The Pound Sterling edged higher against the US Dollar and growing expectations that Britain’s June elections will see the Prime Minister back in office, winning forecasters say, with a landslide majority. According to the latest polls, Theresa May’s lead is helping to eliminate pressure on the Pound which are is also now benefiting from April’s tax flows. Historically, over a 12-year period, the Pound has gained nearly 2.3% each April, just on tax flows; thus far, the Pound is up nearly 2.5%.
As reported at 11:09 am (BST) in London, the GBP/USD was trading at $1.2904, a gain of 0.43%, a slide from the session’s peak set at $1.2917. The EUR/GBP was lower at 0.8448 Pence, a loss of 0.50% for the Euro.
Trump’s Tax Plans Pressure Dollar
A broadly softer US Dollar is also providing support for the Pound. US President Donald Trump’s latest rhetoric over a major corporate tax cut has got investors’ jittery. Analysts say that the proposed cut to corporations and wealthy American tax payers begs the question as to how the government will pay for Trump’s planned infrastructure improvements. The issue of a ballooning deficit has also been called into question should Trump’s tax plan get pushed through. The US Dollar Index, a measure of the dollar’s relative value, is down 0.07% at 98.977. DXY.