Pound Spikes Up As Conservatives Retain Election Lead
December 09 2019 - 12:19AM
RTTF2
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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