The day is today! The UK General election began and the voting process is active. Let’s look into the British pound outlook ahead UK snap election.
ITRADER.com, 8 June – The British pound has been under pressure for the past week as the upcoming snap election in the United Kingdom sent jitters to the blue chip currency.
British pound outlook ahead UK snap election
On the brighter side, sterling fared slightly better last week as it recorded a small 0.62% gain for the week ending June 2. The British pound suffered a series of ups and down during its five-day trading and was really feeling the effect of the election polls.
In June 2, the currency recovered from a record low after finishing at 1.2850 versus the greenback as the US dollar index fell by 0.33% due to a disappointing non-farm payroll report, which showed that the US created only 138 000 additional jobs, compare to 180 000 expected.
It was a good rebound after starting the month of June on a soft note. On the first day of the month, it shed 0.6% against the euro to settle at 87.67 pence, the lowest settlement in more than 2 months, while it went up against the under-pressured US dollar at 1.2784.
Before the pound got a weak start, the currency has ended the month of May on a sour note, falling into a six-week low, after dropping 0.5% at 1.27770 against the greenback and moving down to 0.8722 against the euro from 0.8750.
Traders were using the results of the poll for the June 8 election to give directions on their bets. The latest survey revealed that the Conservative party’s lead over its rival has trimmed down to just 3%. This little confidence on the Conservative to create a majority has negatively affected the British pound.
But as Theresa May grabbed the lead, sterling was moving up. On May 29, it started the week on a right foot, helped by the news that Prime Minister May was on the course of winning the elections. It gained a cent versus the dollar and was up against the euro at 1.14.
With politics being the major driver of sterling, investors are looking ahead of the final results of the June 8 elections to have meaningful directions.
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