The GBP/USD currency pair today hit new weekly lows early in the European session before quickly retracing its losses and hitting new highs after the release of a PanelBase poll. The currency pair was on a downward trend after the release of a YouGov poll, which indicated that Theresa May‘s party might lose twenty seats in the upcoming elections.
The currency pair gained over 150 points at the height of its rally to hit a daily high of 1.2921 before retracing some of its gains.
The currency pair’s decline early in the European session had been triggered by disappointing data from the UK as net lending secured on dwellings missed expectations and came in at £2.7 billion in April versus the previous £3.1 billion. UK mortgage approvals also fell to 64,645 in April as compared to March’s 66,043. The disappointing economic data in combination with the YouGov poll results triggered the cable’s decline.
However, the pair’s decline was reversed by the release of a PanelBase poll, which indicated that the Conservative Party‘s lead was actually intact and had risen by a point to 48%. According to the poll, support for Jeremy Corbyn‘s Labour Party remained unchanged at 33%. The currency pair’s massive rally can be attributed to market relief after it emerged that Mrs. May’s party was still leading given that the Labour Party has promised higher corporate taxation.
The currency pair’s future performance is likely to be affected by political news until after the June 8 UK general election.
The GBP/USD was trading at 1.2895 as at 17:08 GMT having risen from a daily low of 1.2768. The EUR/GBP was trading at 0.8716 having hit a daily high of 0.8749 earlier today.
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