Pound Supported Despite Data
Hopes that a Conservative Party win in the upcoming UK general elections are helping to provide much-need support for the Pound against a backdrop of soft data. Yesterday the ONS had reported that average weekly earnings slowed through September, and today's raft of new data, ranging from retail and housing prices to personal and producer inflation was singularly disappointing. Each reading fell short of analysts' expectations, with the exception of October's annualized core CPI which was flat at 1.7%. The CPI reading for October fell to 1.5%, down from 1.7% and missing the predicted 1.6% (year-over-year basis).
The GBP/USD, as of 11:12 am in London, was trading higher at $1.2855, a gain of 0.056%; the pair is off the session peak of $1.28680. The EUR/GBP is trading lower at 0.8567 Pence, a loss of 0.0233%; t he pair has ranged from 0.8555 Pence to 0.85867 Pence in this session.
Tory Party Outlook Promising
The latest political poll suggests that Boris Johnson's party has a substantial lead of 14 points over its main rivals, the Labour Party. One currency strategist in London aid that as long as political news continues to suggest a Tory win and majority in Parliament, the Pound will remain supported. The Prime Minister has said that he still intends to withdraw Britain from the European Union at the deadline.