Sterling hits 12-day high
- Author: Zachary Reyes Jun 06, 2017,
Jun 06, 2017, 21:08
Sterling slipped around 0.5 per cent against the dollar overnight into Monday, before stabilising at around $1.2894 according to Reuters data.
The market is awaiting the release of new polls taken immediately after the incident in order to effect prices and the Pound will be particularly susceptible to the possibility of a hung parliament, which could have a really damaging effect on Brexit negotiations just 11 days before talks with the European Union are due to begin. While that was down from a 12 point in the same poll a week earlier, it was a wide enough margin to soothe investors' nerves over the possibility of a hung parliament. After last week's underwhelming US Non-Farm Payroll report, Monday's data didn't offer United States dollars traders much good news. Get our markets daily newsletter. That would create huge uncertainty just 11 days before Brexit negotiations are set to begin.
"On a slightly more medium-term basis we are still cautious on the pound", said Daniel Been, Sydney-based head of foreign-exchange research at Australia & New Zealand Banking Group Ltd. "At the same time, the economy is slowing".
The pound, earlier trading at $1.2885, touched the day's high of $1.2911 after the poll came out, up 0.1 percent on the day.
"Today and tomorrow, I am guessing that the sterling will move in a range ahead of the United Kingdom election, as I think no one can accurately forecast the outcome", said Masashi Murata, currency strategist for Brown Brothers Harriman in Tokyo.