Sterling stood up the show in the market yesterday as it rocked in both directions due to a series of conflicting polls for the U.K. snap election. Greenback also experienced some volatility which is attributed to the mixed data released, two days ahead of the last NFP report before June’s FOMC meeting. WTI Crude Oil edged lower, locking our target at $43.80.
U.K. Snap Election Polls are Driving Sterling Crazy
The British pound had a crazy ride yesterday against the majors following a series of polls with conflicting opinions. The first poll released early in the Asian session from YouGov suggested Conservatives might fall 16 seats short of an overall majority and Labour could up their tally of seats by almost 30. The poll disappointed the current government and the sterling, however, a new poll by Panelbase estimated Conservatives winning by 48% of the votes and Labour coming second with 33%.
The polls showing double-digit lead for Conservatives put the British pound on fire, which culminated against its majors. GBP/USD not only recovered its earlier losses but jumped more than 140 pips in a few hours. Meanwhile FTSE100 climbed to new highs, scaled a new peak at 7,586 before it surrendering gains to close 0.09% down on the day. Even though, it managed to record the best monthly increase for the year with +4.39% gains in May. GBP/USD started slipping again as well, after it topped at 1.2921 and continues falling in the early Thursday’s session.
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