Showing an increasing sensitivity to election matters, the pound gave back some of Monday’s gains following the latest poll.
Yesterday the pound rose on reports that the Conservatives were facing an 80-seat majority after December 12th. Well, today, a survey by Kantar shows Boris Johnson and co.’s lead has been cut from 18 points to just 11 in the space of 7 days, news that has left sterling down 0.3% against the dollar and euro alike. That followed an ICM poll late on Monday giving the Tories just a 7 point lead, a 10-point reversal week-on-week.
With the pound in the red, the FTSE was able to eke out a 0.1% rise while its Eurozone peers trickled lower. Returning to 7400 after last Friday sinking below 7250, the UK index sat at its best price for 2 and a half weeks. In contrast the DAX and CAC slipped 0.2% apiece, slipping under 13250 and 5925 respectively.
The muted movements of the European indices, alongside the prospective flat open for the Dow Jones later today, reflects a lack of trade deal updates this Tuesday. Though there was a call between key players Liu He, Robert Lighthizer and Steven Mnuchin, the post-discussion statement claiming that ‘both sides discussed resolving core issues of common concern’, had ‘reached consensus on how to resolve related problems’ and agreed to ‘stay in contact’ over their remaining differences was a tad too vague to spark significant growth. At least, not after Monday’s gains.
Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.
In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved.