Pound (GBP) Surges on Hopes for a Conservative Majority
The Pound (GBP) skyrocketed in the mid-week as YouGov’s highly influential Multilevel Regression and Post-stratification (MRP) poll suggested Boris Johnson will win a substantial majority in next month’s election.
The results of the YouGov #GE2019 MRP model are finally here:
Con – 359 seats / 43% vote share
Lab – 211 / 32%
SNP – 43 / 3%
LD – 13 / 14%
Plaid – 4 / <1%
Green – 1 / 3%
Brexit Party – 0 / 3%
— YouGov (@YouGov) November 27, 2019
This was the poll that first predicted that Theresa May would lose her majority in 2017, and was been meet with cheers from GBP investors who favour a Tory government.
Expect to see UK politics remain centre stage today, potentially infusing further volatility into Sterling amidst a continued lull in notable domestic data.
GBP/EUR Exchange Rate Accelerates, EU Data in Focus
The Pound Euro (GBP/EUR) exchange rate shot higher on Wednesday, striking a fresh six-month high as a lull in Eurozone data and broad strength in the US Dollar (USD) left the single currency vulnerable.
However there will be plenty of data for EUR investors to sink their teeth into today.
Coming up this morning, an expected uptick in Eurozone economic sentiment may lend some modest support to the Euro through the first half of the session.
But the single currency could be met by some pressure later in the afternoon, if German CPI figures show a sharp fall in monthly inflation in November.
GBP/USD Exchange Rate Gains Tempered by Impressive US Data
The upside in the Pound to US Dollar (GBP/USD) exchange rate was capped yesterday as Sterling’s advance was undermined by some robust US economic data.
This saw US GDP in the third quarter unexpectedly revised up from 1.9% to 2.1%, while the accompanying US durable goods orders reported a surprise rebound from -1.4% to 0.6% in October
With US markets closed for Thanksgiving we may see some thin trading conditions limit movement in the US Dollar today.
GBP/CAD Exchange Rate Jumps despite Robust Oil Prices
The Pound to Canadian Dollar (GBP/CAD) exchange rate trended higher during Wednesday’s trading session, despite the oil-sensitive ‘Loonie’ finding support in broader trade as Brent crude held above $64 a barrel.
This came in the wake of reports indicating the Organization of the Petroleum Exporting Countries (OPEC) is likely to agree to extend production cuts when it meets next week in Vienna.
GBP/AUD Exchange Rate Surges as Trump Signs Hong Kong Bill
The Pound to Australian Dollar (GBP/AUD) exchange rate jumped over a cent overnight on Wednesday as hopes for a US-China trade deal were dampened after Donald Trump angered Beijing by signing into law a bill aimed at supporting the rights of protestors in Hong Kong.
GBP/NZD Exchange Rate Strengthens as Markets go Risk-Off
The Pound to New Zealand Dollar (GBP/NZD) exchange rate also rocketed higher overnight as US-China trade jitters saw investors steer clear of the risk-sensitive ‘Kiwi’.