Pound Hits 7-Month High as Conservatives Remain Election Favorites

The Sterling pound today rallied to a new 7-month high against the US dollar before retreating as the London session progressed and the American session began. The GBP/USD kept its bullish bias as the Conservative Party maintained a comfortable lead against the opposition Labour Party ahead of Thursday’s snap general election.
The GBP/USD currency pair today rallied to a high of 1.3180 in the early London session before falling to a low of 1.3135 in the American session and was trading near these lows at the time of writing.
The currency pair traded sideways at the start of today’s session as Japanese investors and traders avoided the pound. However, the pair spiked to its daily highs in the early London session, but could not sustain the bullish momentum and fell shortly afterwards. Market sentiment towards the currency pair remained muted amid an empty UK docket as investors await the general election. Opinion polls indicate that Boris Johnson has a 9–15% lead against Jeremy Corbyn, his closest opponent. However, investors are worried about the accuracy of the polling given that prior surveys failed to predict the outcome of the Brexit referendum and the last snap UK election.
The cable failed to capitalise on the greenback’s weakness as tracked by the US Dollar Index, which hit a low of 97.56 earlier today. The pair is trading at a 7-month high and could be susceptible to profit-taking by long-term investors.
The currency pair’s future performance is likely to be affected by tomorrow’s UK industrial production and GDP reports.
The GBP/USD currency pair was trading at 1.3151 as at 18:17 GMT having fallen from a high of 1.3180. The GBP/JPY currency pair was trading at 142.86 having dropped from a high of 143.10.

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