The win for Macron in the French Presidential election failed to provide any support for the Pound Sterling which held below the $1.30 level. The Pound continues to trade within relatively narrow ranges as attention turns to the upcoming meeting of the Bank of England. The June 8th national vote, as called for by the Prime Minister, is also drawing investors’ focus as the rhetoric escalates as to the possible outcome of the Brexit talks. The Pound had gained about 3% value against the US Dollar since Theresa May called for the vote, and investors are hopeful that she will have a stronger stance in the negotiations.
As reported at 11:24 am (BST) in London, the GBP/USD was trading at $1.2967, down 0.16%; the pair has ranged from $1.2901 to $1.2993 in today’s trading session. The EUR/GBP was down 0.35% to trade at 0.8444 Pence; off the session low of 0.8432 Pence while the peak was set at 0.8490 Pence.
Analysts caution investors that the Pound is likely to remain relatively stagnant. According to one analyst in Frankfurt, the risks ahead for the Pound are tremendous, so with every brief rally you need to consider the Pound’s future. What markets are waiting for this week is Thursday’s meeting of the Bank of England, and expectations that the BoE’s Monetary Policy Committee will be comfortable with the currency’s rise. There are still no expectations that the BoE might begin to withdraw stimulus as even a rise above the inflation target should might still be acceptable.