Tuesday was another quiet week in terms of macroeconomic updates, though politics had an impact on the major currency pairs. GBP is preparing for the election tomorrow and is prompt to the latest polls coming out. EUR/USD continue to be low volatile and traders are hoping for something strong to give it back its momentum.
Pound Drops Before Election as Polls Show Just Conservatives Leads by 4%
The latest U.K. election poll was enough to push the sterling lower against the majors, especially against the Australian dollar, which rallied following RBA policy meeting. Latest YouGov Westminster voting intention figures showed that the current U.K. Prime Minster Theresa May’s party, Conservatives, will gain 42%, just 4% lead from the Labour party. Such result will shock the sterling, as the U.K. snap election results will not satisfy May’s willing. May called for a snap election on June 8th, in an attempt to gain more seats in the parliament and has more strength to negotiate Brexit with the European Union. Later today, the U.K. Halifax house prices and the RICS housing price balance for May will be released.
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