The pound has made a slight recovery today after suffering its biggest loss since January, on the back of election polls released showed the forthcoming elections to be held in the UK will be much closer than earlier predicted.
At 7.05pm(GMT) the British currency was trading at $1.2841 up from $1.2795 in Yesterday’s trading.
The pound had been on a winning streak since April ever since British Prime Minister Theresa May called snap elections for June which the market interpreted as more political stability,as the current government was expect to strengthen their numbers in Parliament.
The elections were also expected to give May a stronger hand at the negotiating table when Brexit talks get underway.
The conservative party had a 20-point lead over labour according to other recent polls, but the one released last Friday showed the margin had been cut to just 5 points, which caused traders to dump the pound.
It will now be a wait and see game up until election day and although May should still win, the thought of Jeremy Corbyn becoming the next British Prime minister is likely to keep the pound under pressure
“The June 8 U.K. election is approaching, and the polls suggest a tighter race than anyone expected, including most of all Prime Minister May,” said Marc Chandler, global head of currency strategy at BBH
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 61% of retail investor accounts lose money when trading CFDs with this broker. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 61% of retail investor accounts lose money when trading CFDs with this broker. Before deciding to trade foreign exchange you should consider whether you understand how CFDs work, your investment objectives, your level of experience and readiness of taking risk. The possibility exists that you could sustain a loss of some or of all of your initial investments and therefore you should not risk more than you are prepared to lose. Please seek independent financial advice if necessary.
|By clicking "Continue" you will be redirected to the website operated by FIBO Group, LTD company registered in BVI and regulated by FSC. Please familiarize yourself with the Customer Agreement through the link. Click "Cancel" to remain on this page.|