+357 25 105 641
Pound settles after big losses
Published on 29.05.2017 21:18

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

“We suspect that if investors thought that Labour’s Corbyn would be next Prime Minister, sterling would be considerably lower,” he added.

The material published in on this page is produced by the FIBO group companies, and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

Andrew Masters

Analyst

The world of trading has no boundaries
×

Risk warning: Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, your level of experience and preparation 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.

Important notice
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.