The GBP/USD currency pair today lost ground after the release of a new YouGov poll, which indicated that Theresa May‘s party might not get the necessary majority in the upcoming UK election. The currency pair began the day’s session on an upward trend before losing ground after the YouGov poll indicated that the Conservative Party would fall short of a majority by 22 seats.
The currency pair lost over 70 points at the height of its decline as the British pound remains extremely volatile in light of Thursday’s general election.
The GBP/USD currency pair rose to new daily highs around 1.2950 before the opening of the European markets. However, the pair experienced a major drop after most European markets opened much lower, which triggered a major sell-off of most European currencies. The YouGov poll initially did not elicit an immediate reaction from the cable, but the pair has since established a downward trend. Thursday’s general election has created a jittery sentiment towards the British pound.
The US JOLTS job openings report released by the Bureau of Labor Statistics also affected the currency pair negatively as it strengthened the US dollar. The JOLTS job openings exceeded expectations as it came in at 6.044 million versus the expected 5.650 million.
The currency pair’s future performance is likely to be affected by the release of Halifax Plc housing prices report and the US MBA mortgage application, both scheduled for tomorrow.
The GBP/USD was trading at 1.2884 as at 17:43 GMT having dropped from a daily high of 1.2950. The GBP/JPY was trading at 140.78 having opened today’s session trading at 142.45.
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