Pound Starts Week on Front Foot
The pound made decent gains against both the euro and the US dollar on Monday as the latest election polls suggest the Tories will comfortably win the election with a 48 seat majority. As a result, sterling has gained around 0.5% against its two main counterparts.
The pound started the week higher against all nine of the other G10 currencies after 270,000 YouGov interviews were run through a Datapraxis predictive model, suggesting the Tories would win 349 seats in the December election, to Labour’s 213.
There were no significant data releases to note on Monday so the movement in the pound was purely the result of political news, as has often been the case since the EU referendum back in June 2016. In fact, it could prove to be a fairly quiet week for the pound as there are no important ecostat releases until next week. At the time of writing, GBP/EUR is trading at 1.17 and GBP/USD is sitting in the high 1.28’s.