Pound Spikes Up As Conservatives Retain Elect…

December 9, 2019

The pound remained firm against its key counterparts in European trading on Monday, as recent polls showed a solid lead for the Conservative party at this week’s general election, which would end the Brexit uncertainty.

A Survation poll for ITV’s Good Morning Britain gave a 14-point lead to the Conservatives over Labour party.

The poll showed Tory lead was up by two points at 45 percent, while Labour support has dropped two points to 31 percent.

A YouGov poll for The Sunday Times showed a 10-point lead for Boris Johnson’s Conservative party over Labour.

The survey showed that support for Tories rose one point to 43 percent, but Labour was unchanged at 33 percent.

The polls suggested that Tories will be able to get a parliamentary majority at Thursday’s election.

Investors are hopeful that a Conservative majority government could pass the Brexit deal by the January 31 deadline.

The currency has been trading higher against its major counterparts in the previous session.

The pound rose to near a 7-month high of 1.3057 versus the franc and more than an 8-month high of 1.3181 against the dollar, from its early lows of 1.2999 and 1.3132, respectively. Next key resistance for the pound is seen around 1.35 against both the franc and the dollar.

The pound firmed to 0.8392 versus the euro, its strongest since May 2017. The pound is seen facing resistance around the 0.82 mark.

Reversing from an early low of 142.60 against the yen, the pound gained to 143.11. The currency may locate resistance around the 147.00 region, if it rises again.

Data from the Cabinet Office showed that Japan’s gross domestic product was bumped all the way up to a seasonally adjusted annualized 1.6 percent in the third quarter of 2019.

That was a sharp upward move from the 0.2 percent gain originally reported last month for Q3.

Looking ahead, at 8:15 am ET, Canada housing starts data for November is scheduled for release.

Fifteen minutes later, Canada building permits for October will be featured.


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