Markets Steady, Sterling Under the Microscope as the Election Approaches

It was a relatively steady day on Friday as the market headed into what is a long weekend for a lot of the globe with bank holidays today in China, the UK and the US.

The main mover on Friday was the sterling as the polls showed that the contest is getting a lot tighter than first predicted and the Conservatives aren’t assured of an easy run. This put a lot of pressure on the currency with Cable down under 1.2800 and EurGbp up to nearly 0.8750 on the day. This topic will continue to sway the pound as we move closer to the June 8th election day. We did see the dollar appreciate across the currencies with the Dxy opening up around 97.40 this morning having traded down to 97.00 during the day on Friday.

Looking ahead to today’s trading and with the bank holidays ahead of us, most traders will be anticipating a relatively quiet day with currencies sticking to their recent ranges. The only thing on the calendar’s for today is Mario Draghi’s report to the Economic and Monetary Affairs Committee which takes place at 11.00 pm during the London session.

With range bound conditions expected traders will be focusing to trading the support and resistance levels hard whilst keeping a wary eye on the news wires for any geo political developments. It’s been relatively quiet but we noted that North Korea once again tested a missile in contravention of UN sanctions and this is heightening tensions across the region.

Rakuten Securities Australia Review