The Sterling pound today continued to fall against the US dollar as Boris Johnson‘s ratings fell following yesterday’s public debate against Jermy Corbyn. The GBP/USD currency pair dropped as investors remained concerned about Corbyn’s rising popularity, which could lead to a hung Parliament after the elections.
The GBP/USD currency pair today fell from an opening high of 1.2927 to a low of 1.2887 in the early London session, but had recovered and was near breakeven at the time of writing.
The currency pair fell to its daily lows earlier today as markets digested the fact that Boris Johnson now has a 1% lead against his primary opponent. Previous polls had indicated that Boris had a comfortable 14% lead against Corbyn. Investors were also worried that Johnson’s decision to maintain current corporate taxes could have displeased a significant group of voters. The Prime Minister’s delay in releasing the report on whether Russia manipulated the UK referendum vote is also contentious and could cost him some votes. The cable was also affected by the risk-off market sentiment caused by the political and trade tensions between the US and China.
The cable’s decline was accelerated by the greenback’s strength as tracked by the US Dollar Index, which hit a high of 98.04. However, the pair’s decline was not drastic as investors were waiting for the FOMC minutes due for release later today.
The pair’s future performance will continue to be driven largely by British politics and also by the FOMC minutes set for release at 19:00 GMT.
The GBP/USD currency pair was trading at 1.2910 as at 16:13 GMT having fallen from a high of 1.2927. The GBP/JPY currency pair was trading at 140.31 having recovered from a low of 139.68.
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