The Pound Sterling was lifted versus the US Dollar after the latest polls showed the Conservative Party pulling out a lead. That helped to bolster expectations that June’s election outcome could provide the UK Prime Minister with a stronger mandate as the Brexit talks approach. Investors and analysts are hopeful that with the backing of a Conservative parliament, Ms. May has more opportunity to make compromises with the EU that would smooth Britain’s transition away from the EU and minimize any potential damage to the economy.
As reported at 11:38 am (BST) in London, the GBP/USD was trading at $1.2817. up 0.27%, easing away from the session peak set at $1.2860; the low for the trading day was $1.2824. The EUR/GBP was up 0.17% to trade at 0.8397 Pence, the new daily peak; the pair had earlier hit a low of 0.8348 Pence.
Pound’s Advance Capped by Doubt
Theresa May called for the snap election to be held June 8th and that has helped the Pound surge against the greenback, pushing at one point to a 4-month high. The Conservative Party took a 48% lead in the latest poll, with the Labour Party calling to 24%. Analysts say that there is still some wariness on the part of investors which is the reason why the Pound didn’t rally higher.