A lack of data from the UK this week will allow the exchange rates to be dominated by Brexit and opinion polls once more. In the early trading hours of Monday morning GBP sellers were pleased to see that the Pound had strengthened against all the major currencies by around 0.4%. GBP/EUR broke through €1.17 and managed to hold its ground all day. GBP/USD on the other hand managed to move above $1.2950, a two-week high.
Opinion polls at present are all pointing towards a Conservative majority getting the vote on the 12th December. These polls had the Blues at a 14-point majority at the back end of last week however, an early release by a YouGov opinion poll had them around 17 points ahead of Labour.
Investors like the sound of this as they see a Conservative majority as the best option for the economy and the Pound at present. They are hoping that, if they do receive enough votes, they will be able to push Boris’s deal through and move on to the next stage of negotiations.