Pound Makes Headway on Dollar
The Pound Sterling hit a 6-month peak against a weakened US Dollar during FX trading in London. The Conservative Party seems to have taken a stronger lead against the Labour Party, according to a poll released earlier today. Uncertainty until the December 12th election is likely to continue say analysts, as a win by the Labour Party will mean greater uncertainty for the Brexit as party leaders have promised an attempt to renegotiate better terms as well as a second referendum on the Brexit departure. Labour also says t hat they would ensure higher taxes for wealthy individuals and corporations.
The GBP/USD was trading at $1.2993, a gain of 0.4018% at 11:29 am in London; the pair slipped from the session peak of $1.29954 while the low for the trading day was set at $1.29299. The EUR/GBP is lower at 0.8522 Pence, a loss of 0.3857% and off the session trough of 0.85218 Pence.
Dollar Weakens on Data
The US Dollar was pushed lower on the latest signs of a worsening economy. The Institute for Supply Management yesterday reported disappointing manufacturing figures for December . The reading came in at 48.1, far lower than the expected 49.2 and a slide from October's reading of 48.3. An unexpected decline to -0.8% in US construction spending in October, and a downward revision of the previous reading, is also weighing on the greenback which lost ground against the safe haven Yen. Comments that the Trump administration might seek to reconcile the trade rift with China after the 2020 election is also putting pressure on the greenback. The USD/JPY was trading at 108.8990 Yen, down 0.1101% and off the earlier low of 108/809 Yen.